Improving Supply Chain Coordination by Linking Dynamic Procurement Decision to Multi-Agent System

TL;DR

This paper introduces a multi-agent system for dynamic procurement in supply chains, utilizing NYOP negotiations to improve coordination and performance metrics like bullwhip and fill rate.

Contribution

It presents a novel multi-agent dynamic supply chain system using NYOP-based negotiation algorithms and simulation tools for performance evaluation.

Findings

Improved supply chain performance metrics

Effective dynamic procurement negotiation algorithm

Validated system through simulation results

Abstract

The Internet has changed the way business is conducted in many ways. For example, in the field of procurement, the possibility to directly interact with a trading partner has given rise to new mechanisms in the supply chain management. One such interactive dynamic procurement, which lets both buyer and seller software agents bid by potential buyer agents instead of static procurement by vendors. Dynamic procurement decision could provide the buying and selling channel to buyer, to avoid occurring condition that seller could not deliver on the contract promise. Using NYOP(Name Your Own Price) to be the core of dynamic procurement negotiation algorithm sets up multi-agent dynamic supply chain system, to present the DSINs(Dynamic Supply Chain Information Networks) by JADE, and to present the dynamic supply chain logistic simulation by eM-Plant. Finally, evaluating supply chain performance with supply chain performance metrics (such as bullwhip, fill rate), to be the reference of enterprise making deciding in the future.