MULTI-AGENT NEGOTIATION IN A SUPPLY CHAIN - Case of the Wholesale Price Contract

Omar Kallel, Ines Ben Jaafar, Lionel Dupont, Khaled Ghedira

Abstract

In this paper, we propose a multi-agent negotiation model for the wholesale price contract (price: W, quantity: Q) in a supply chain with a retailer buying from several subcontractors. We assumed that the retailer stocks up from several subcontractors in order to face a market with fixed demand. Each subcontractor has a normal production capacity (CN) which can be increased until a maximal capacity (CM) but with an additional cost. The demand is superior to the sum of normal capacities and inferior to the sum of maximal capacities. Thereby, the negotiated and agreed price between the retailer and each subcontractor relies on the ordered quantity and the extra cost generated by any excess capacity (above the CN level). Under asymmetric informational context, we propose a multi-agent model which is a duplication of the considered supply chain; subcontractor agents negotiate a combination (price, quantity) in order to maximize their benefits and a retailer agent negotiates several combinations (price, quantity) with the different subcontractor agents in order to satisfy demand, allocate quantities and maximize its margin. Experimental results shows that the objective of reaching agreements and establish a long-lasting “win-win” partnership is totally reached but repartition of benefits is not so fair.

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Paper Citation


in Harvard Style

Kallel O., Ben Jaafar I., Dupont L. and Ghedira K. (2008). MULTI-AGENT NEGOTIATION IN A SUPPLY CHAIN - Case of the Wholesale Price Contract . In Proceedings of the Tenth International Conference on Enterprise Information Systems - Volume 4: CSAC, (ICEIS 2008) ISBN 978-989-8111-39-5, pages 305-314. DOI: 10.5220/0001737603050314


in Bibtex Style

@conference{csac08,
author={Omar Kallel and Ines Ben Jaafar and Lionel Dupont and Khaled Ghedira},
title={MULTI-AGENT NEGOTIATION IN A SUPPLY CHAIN - Case of the Wholesale Price Contract},
booktitle={Proceedings of the Tenth International Conference on Enterprise Information Systems - Volume 4: CSAC, (ICEIS 2008)},
year={2008},
pages={305-314},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0001737603050314},
isbn={978-989-8111-39-5},
}


in EndNote Style

TY - CONF
JO - Proceedings of the Tenth International Conference on Enterprise Information Systems - Volume 4: CSAC, (ICEIS 2008)
TI - MULTI-AGENT NEGOTIATION IN A SUPPLY CHAIN - Case of the Wholesale Price Contract
SN - 978-989-8111-39-5
AU - Kallel O.
AU - Ben Jaafar I.
AU - Dupont L.
AU - Ghedira K.
PY - 2008
SP - 305
EP - 314
DO - 10.5220/0001737603050314