Transactions of the Institute of Systems, Control and Information Engineers
Online ISSN : 2185-811X
Print ISSN : 1342-5668
ISSN-L : 1342-5668
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Hierarchical-game Based Negotiation Protocol for Effective Supply Chain Network
Fang YuToshiya KaiharaNobutada Fujii
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2013 Volume 26 Issue 4 Pages 138-146

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Abstract

This paper focuses on single-attribute negotiation protocol between multiple Manufacture Agents (MA) and multiple Material Supplier Agents (MSA). A hierarchical-game based negotiation protocol is proposed. It is a three-layer game, where the first layer game is based on the results of the second and the third layer games. Two-person game is used to find the optimal trade partnerships to maximize the whole profit of Supply Chain Network (SCN) in the first layer. The second layer games aim to findall the possible coalitions using cooperative game. However, they are not necessary for all the time. They exist only at the situation where the order of MA is out of the ability of MSA. Then, the third layer games are used to determine the final strategies between MAs and MSAs or all the possible coalitions found in the second layer games. Stackelberg equilibrium is introduced to resolve the conflict of the interests of the two sides. What we should pay attention to is the second and the third layer games are nested inside the first layer game. Simulations are provided to verify the effectiveness and the feasibility of the proposed protocol. The optimal setting of the proposed protocol under given condition is obtained by the performance analysis.

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© 2013 The Institute of Systems, Control and Information Engineers
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