Scenario-based dynamic negotiation for the coordination of multi-enterprise supply chains under uncertainty

Scenario-based dynamic negotiation for the coordination of multi-enterprise supply chains under uncertainty

Abstract
A novel Scenario-Based Dynamic Negotiation approach is proposed for the coordination of decentralized Supply Chain based Superstructures under uncertainty. The relation between the conflicting objectives of the different organizations (Providers/Clients) is modeled through non-zero-sum non-symmetric roles negotiation based on expected win-win principles. The client (leader) designs coordination agreements according to its best conditions, considering the uncertain reaction of the provider (“follower”), which is modeled through a probability of acceptance function. Different negotiation scenarios are studied: i) Standalone, ii) Cooperative, and iii) Non-Cooperative cases. The use of the resulting models is illustrated through a case study with different vendors around a “leader” (client) in a decentralized scenario. Although the usual cooperation hypothesis will allow the leader to identify the situation with higher overall profit expectations, using the proposed approach it is possible to identify non-Cooperative Scenarios with also high profit expectations, more likely to be accepted by all individual partners.
Scenario-based dynamic negotiation for the coordination of multi-enterprise supply chains under uncertainty

Scenario-based dynamic negotiation for the coordination of multi-enterprise supply chains under uncertainty

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