Bilateral Negotiation in a Multi-agent Supply Chain System

Abstract. A supply chain is a set of organizations directly linked by flows of services from suppliers to customers. Supply chain activities range from the ordering and receipt of raw materials to the production and distribution of finished goods. Supply chain management is the integration of key activities across a supply chain for the purposes of building competitive infrastructures, synchronizing supply with demand, and leveraging worldwide logistics. This paper addresses the challenges created by supply chain management towards improving long-term performance of companies. It presents a multi-agent supply chain system composed of multiple software agents, each responsible for one or more supply chain activities, and each interacting with other agents in the execution of their responsibilities. Additionally, this paper presents the key features of a negotiation model for software agents. The model handles bilateral multi-issue negotiation and incorporates an alternating offers protocol, a set of logrolling strategies, and a set of negotiation tactics