A multi-attribute multi-item negotiation mechanism of supply chain networks between buyers and sellers

Fang Yu, Toshiya Kaihara, Nobutada Fujii, Changyin Sun and Wankou Yang

International Journal of Production Research, 2015, vol. 53, issue 20, 6143-6160

Abstract: This article focuses on the multi-attribute multi-item negotiation between multiple manufacturer agents (MAs) and multiple material supplier agents (MSAs). A coalition formation-based negotiation protocol is proposed. The MSAs are allowed to establish coalitions when the orders of the MAs exceed their abilities. Three attributes (price, quantity and lead time) of the items are considered during the negotiation. Both the MAs and the MSAs can give concessions among the attributes in tradeoff relationships according to their own preferences. The non-cooperative game is introduced to find the equilibria of the negotiations. The final allocation scheme is determined to maximise the total profit of the supply chain networks based on the equilibria. Simulations are provided to verify the effectiveness and feasibility of the proposed protocol.

Date: 2015
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DOI: 10.1080/00207543.2015.1034328

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