Model for Negotiating Prices and Due Dates with Suppliers in Make-to-Order Supply Chains
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.
KeywordsSupply Chain Part Type Price Issue Negotiation Support System Mediator Agent
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