Abstract
This research proposes a three-layered dynamic supply chain model consisting of suppliers, manufacturers, and clients as a minimum model for multi-layered dynamic supply chains. Each organization can change the configurations of supply chains by selecting the most profitable order. This research provides a cooperative negotiation process among the three-layered organizations. A prototype of simulation system was developed to evaluate the effectiveness of the three-layered model. The experimental results showed that the manufactures and the suppliers entered into more contracts and obtained more profits, and the clients obtained ordered products at lower prices than required prices of the initial orders, by continuing to modify the production schedules of the manufacturers after sending the orders to the suppliers.
