Multi-agent based Multi-item Negotiation of Supply Chain Networks using Game Theory

Abstract

In this paper, multi-agent system is applied into supply chain networks, where multi-item negotiation between multiple manufacturer agents (MA) and multiple material supplier agents (MSA) is discussed. A combined coalition formation protocol is proposed when the order of MA is out of ability of MSA. Not only is coalition formation for complementary considered, but also coalition formation for substitution is taken into account. The coalition which maximizes profit of leader MSA will be determined as the final coalition. Negotiation between MA and final determined coalition is modeled as a Stackelberg game, and the finding of agreement is transformed into determining Stackelberg equilibrium. Simulations are provided to verify feasibility of proposed protocol.