Bilateral negotiation in a multi-agent supply chain system

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

Intelligent Optimisation Agents in Supply Networks

This paper describes a model of intelligent supply network that improves efficiency within the supply chain. We argue that intelligence creates efficiency and results in chain optimisation. In particular, intelligent agents technology is used to optimise performance of a beverage logistics network. Optimisation agents can help solve specific problems of supply network: reduce inventories and lessen bullwhip effect, improve communication, and enable chain coordination without adverse risk sharing. We model the beer supply network to demonstrate that products can acquire intelligence to direct themselves throughout the distribution network. Further, they gain a capability to be purchased and sold while in transit. Overviews of the supporting technologies that make intelligent supply network a reality are fully discussed. In particular, optimisation agents have the characteristics of autonomous action, being proactive, reactive, and able to communicate. We demonstrate that agents enhance the flexibility, information visibility, and efficiency of the supply chain management. Suggestions and recommendations for further research are provided

EDI and intelligent agents integration to manage food chains

Electronic Data Interchange (EDI) is a type of inter-organizational information system, which permits the automatic and structured communication of data between organizations. Although EDI is used for internal communication, its main application is in facilitating closer collaboration between organizational entities, e.g. suppliers, credit institutions, and transportation carriers. This study illustrates how agent technology can be used to solve real food supply chain inefficiencies and optimise the logistics network. For instance, we explain how agribusiness companies can use agent technology in association with EDI to collect data from retailers, group them into meaningful categories, and then perform different functions. As a result, the distribution chain can be managed more efficiently. Intelligent agents also make available timely data to inventory management resulting in reducing stocks and tied capital. Intelligent agents are adoptive to changes so they are valuable in a dynamic environment where new products or partners have entered into the supply chain. This flexibility gives agent technology a relative advantage which, for pioneer companies, can be a competitive advantage. The study concludes with recommendations and directions for further research

Disruptive and Conventional Technologies for the Support of Logistics Processes: A Literature Review

The supply chain has become a key element of increasing the productivity and competitiveness of companies. To achieve this, it is essential to implement a strategy based on the use of technologies, which depends on knowledge of the scope and impact of logistics technologies. Therefore, this article aims to identify the main technologies supporting logistics management and supply chain processes to establish their functionality, scope, and impacts. For this, conventional technologies and technologies framed by the concept of Industry 4.0 that allow the implementation of Logistics 4.0 in companies are analyzed. As a result of searching databases such as Scopus, Web of Science, and Science Direct, we provide an analysis of 18 technologies focusing on their definition, scope, and the logistics processes involved. This study concludes that technologies in logistics management allow for a reduction in total costs, improve collaboration with suppliers and customers, increase the visibility and traceability of products and information, and support decision-making for all agents in the supply chain, including the final consumer

Chemical industry supply chain optimisation using agent-based modelling

In this paper we present an application of Supply Chain Spread Sheet Simulator (SCSS) in a task dealing with chemical industry supply chain redesign and optimisation. SCSS uses principles of Agent-Based Modelling combining 4 types of agents with 3 algorithms to control their behaviour. Location Algorithm is used to place the logistics objects satisfying the demand of customers, Clarke&Wright's Savings Algorithm is applied to plan the routes and Past Stock Movement Simulation is used to control the stock levels. SCSS is developed in MS Excel using programming language Visual Basic for Applications. Its basic functionality is discussed simulating a real task dealing with the redesign of the distribution system for goods coming from chemical industry in the Czech Republic. We test 6 different structures of the distribution system differing in number of located logistics objects ranging from 1 to 6. Based on the outputs of SCSS recalculated to distribution costs we suggest decreasing the number of located warehouses from 6 to 1 estimating almost 33 % distribution costs savings per year

A Framework to Support Coalition Formation in Supply Chain Collaboration

This paper proposes a framework for agents in globally collaborative supply chain by applying the concept of coalition formation, a cooperation game in game theory. This framework provides mutual benefits to every party involved buyers, sellers and logistics providers. It provides a common gateway that allows individual parties to locate the right partners, negotiate with them, and form coalition in the best possible ways. The framework is applicable to real world e-business models, including B2C, B2B, supply chain and logistics, SME, etc. We firstly discuss common needs existing in today e-business. We then discuss about our framework, i.e., negotiation protocol and decision mechanism

An adaptive ontology-mediated approach to organize agent-based supply chain negotiation

Conference Theme: Soft Computing Techniques for Advanced Manufacturing and Service SystemsSession - MP-Fc Supply Chain Management & Logistics 3: cie181hk-1Effective supply chain management (SCM) comprises activities involving the demand and supply of resources and services. One important aspect of SCM is that companies in the supply chain may have to make decisions which are conflicting with the other partners. Negotiation is an essential approach to solve transaction and scheduling problems among supply chain members. Multi-agent systems (MAS) are being increasingly used in SCM applications. The advances in agent technology have provided the potential of automating supply chain negotiations to alleviate human interactions. This paper proposes an ontology-mediated approach to organize the agent-based supply chain negotiation and equip the agents with sophisticated negotiation knowledge. Firstly, a generic agent negotiation scheme is developed involving the agent intelligence modules, the knowledge representation method and the interaction behaviors. Then, the negotiation knowledge is structured through the usage of ontology, which performs as a hierarchical architecture as well as a descriptive language. The relationships between negotiation ontology concepts are defined through SWRL inference rules. Through this method, agents' negotiation behaviors will be more adaptive to various negotiation environments in accordance with different negotiation knowledge.published_or_final_versionThe 40th International Conference on Computers & Industrial Engineering (CIE40), Awaji City, Japan, 25-28 July 2010. In Proceedings of the International Conference on Computers and Industrial Engineering, 2010, p. 1-

Do risk events increase supply chain uncertainty? A case study

Supply chain uncertainty has become an important area of research, and it is crucial for many firms, and especially so for global firms. Decision makers find it difficult to make decisions due to lack of transparency in the supply chain and the impact of possible risk events. This paper aims to approach this topic by developing a conceptual model to assist logistics and supply chain managers to improve supply chain effectiveness by analysing risk events. To this end we use a case study based on a set of interviews with agents of a German firm and some of its suppliers from India, China and Europe, which generates insights uncaptured in previous research in the area. The main findings answer questions such as: 1. How to build an agile supply chain strategy with rapid planning and integrated execution in different stages?; 2. How to identify and avoid risk events as they increase the supply chain uncertainty and are multiplied when interrelated risk events occur simultaneously; 3. Can supply chain uncertainty be reduced by determining the degree of flexibility required to mitigate risk effects, reducing supply chain uncertainty and increasing the firm’s dynamic capabilities?

Do risk events increase supply chain uncertainty? A case study

Supply chain uncertainty has become an important area of research, and it is crucial for many firms, and especially so for global firms. Decision makers find it difficult to make decisions due to lack of transparency in the supply chain and the impact of possible risk events. This paper aims to approach this topic by developing a conceptual model to assist logistics and supply chain managers to improve supply chain effectiveness by analysing risk events. To this end we use a case study based on a set of interviews with agents of a German firm and some of its suppliers from India, China and Europe, which generates insights uncaptured in previous research in the area. The main findings answer questions such as: 1. How to build an agile supply chain strategy with rapid planning and integrated execution in different stages?; 2. How to identify and avoid risk events as they increase the supply chain uncertainty and are multiplied when interrelated risk events occur simultaneously; 3. Can supply chain uncertainty be reduced by determining the degree of flexibility required to mitigate risk effects, reducing supply chain uncertainty and increasing the firm’s dynamic capabilities?

Intelligent wireless web services: context-aware computing in construction-logistics supply chain

The construction industry has incurred a considerable amount of waste as a result of poor logistics supply chain network management. Therefore, managing logistics in the construction industry is critical. An effective logistic system ensures delivery of the right products and services to the right players at the right time while minimising costs and rewarding all sectors based on value added to the supply chain. This paper reports on an on-going research study on the concept of context-aware services delivery in the construction project supply chain logistics. As part of the emerging wireless technologies, an Intelligent Wireless Web (IWW) using context-aware computing capability represents the next generation ICT application to construction-logistics management. This intelligent system has the potential of serving and improving the construction logistics through access to context-specific data, information and services. Existing mobile communication deployments in the construction industry rely on static modes of information delivery and do not take into account the worker’s changing context and dynamic project conditions. The major problems in these applications are lack of context-specificity in the distribution of information, services and other project resources, and lack of cohesion with the existing desktop based ICT infrastructure. The research works focus on identifying the context dimension such as user context, environmental context and project context, selection of technologies to capture context-parameters such wireless sensors and RFID, selection of supporting technologies such as wireless communication, Semantic Web, Web Services, agents, etc. The process of integration of Context-Aware Computing and Web-Services to facilitate the creation of intelligent collaboration environment for managing construction logistics will take into account all the necessary critical parameters such as storage, transportation, distribution, assembly, etc. within off and on-site project