Game theory based multi-attribute negotiation between MA and MSAs

Abstract

This paper focuses on the multi-attribute negotiation between Manufacture Agent (MA) and Material Supplier Agent (MSA) of supply chain network (SCN). A modified two-stage negotiation protocol is proposed based on the two-stage negotiation protocol proposed in the previous work. The negotiation between MA and MSAs, where the quantity of the order of MA depends on the demand of Consumer Agent (CA), are discussed to decide the final supplier and the final strategies. The strategies of the negotiation are the wholesale price of the product, the quantity of the order, and the lead time. The final solution is solved by finding the Stackelberg equilibrium of MA-Stackelberg game. Numerical case is provided to illustrate the proposed protocol. © IFIP International Federation for Information Processing 2013.