Negotiation-based Order Lot-Sizing Approach for Two-tier Supply Chain

Abstract

This paper focuses on a negotiation based collaborative planning process for the determination of order lot-size over multi-period planning, and confined to a two-tier supply chain scenario. The aim is to study how negotiation based planning processes would be used to refine locally preferred ordering patterns, which would consequently affect the overall performance of the supply chain in terms of costs and service level. Minimal information exchanges in the form of mathematical models are suggested to represent the local preferences and used to support the negotiation processes.