The two-stage negotiation mechanism for order allocation in many-to-many supply chain

Abstract

In this paper, the interdependent orders allocation problem in the many-to-many supply chain environment, as well the supplier's capacity and the multiple issues such as the execution time, the quantity and the cost are addressed. With these constraints, more complicated conflicts resolution should be addressed. Firstly, the negotiation based interdependent order allocation problem is defined. Then, the two-stage negotiation protocol which integrates the bidding negotiation and the argumentation-based negotiation is developed to implement the order allocation process and solve the conflicts. The negotiation protocol prescribes the rules of negotiation that regulates the interaction acts for the negotiation partners. In addition, the automated negotiation approach is adopted to construct the simulation environment of the negotiation. The experiment results show that the order allocation problem can be resolved through the negotiation under different supply chain contexts, such as the different order sizes, different supplier sizes and different degree of the complexity of the orders.