A market mechanism for autonomous distributed manufacturing systems -Towards improvement of total productivity and individual profit-

Abstract

Under direct negotiation between the orderer and the contractor in the procurement process inthe manufacturing industry, competitive bidding based on price often causes dumping. In addition, ordersare concentrated on some contractors, and the productivity of the entire group of companies declines. Inthis research, we propose a market mechanism based on automated negotiation which selects the contractorsso that production amount of the whole market increases while securing the profit of each contractor. Morespecifically, while the bidders try to get high-profit tasks from the projects on the market, our reverse-auction algorithm for the market allocates tasks to bidders so that the production amount of the entire marketincreases.