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Model for Negotiating Prices and Due Dates with Suppliers in Make-to-Order Supply Chains

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Agent Computing and Multi-Agent Systems (PRIMA 2006)

Part of the book series: Lecture Notes in Computer Science ((LNAI,volume 4088))

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Abstract

This study deals with the problem of supporting negotiation on prices and due dates of multiple orders between a manufacturer and its suppliers in a make-to-order supply chain. A new negotiation agenda with two phases is proposed based on the fact that relationship between the partners is both cooperative and competitive. In the cooperative phase a mediator implementing Simulated Annealing is incorporated to help the manufacturer and the supplier search tentative agreement of due dates which minimizes the total supply chain cost. Then, they adjust the reservation value and aspiration value of price accordingly based on the idea of integrated-utility. They bargain on the price issue using concession based methods in the competitive phase. The proposed negotiation agenda and approach can achieves near-optimal social welfare and reach win-win solution for negotiation agents. Result of a numerical example is reported.

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© 2006 Springer-Verlag Berlin Heidelberg

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Nie, L., Xu, X., Zhan, D. (2006). Model for Negotiating Prices and Due Dates with Suppliers in Make-to-Order Supply Chains. In: Shi, ZZ., Sadananda, R. (eds) Agent Computing and Multi-Agent Systems. PRIMA 2006. Lecture Notes in Computer Science(), vol 4088. Springer, Berlin, Heidelberg. https://doi.org/10.1007/11802372_31

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  • DOI: https://doi.org/10.1007/11802372_31

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-36707-9

  • Online ISBN: 978-3-540-36860-1

  • eBook Packages: Computer ScienceComputer Science (R0)

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