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

Agent-based coalitions in dynamic supply chains

Coalition formation is an important issue in multi-agent systems. Recent work in the area has focused on reducing the complexity of forming coalitions, i.e., each agent deliberately searches for potential coalition members before negotiating with them. We propose a framework for coalition formation of agents in a dynamic supply chain environment. The framework is composed of a negotiation protocol and a decision mechanism. The negotiation protocol allows thorough communication among agents across sectors (buyers, sellers, logistic providers). With the decision mechanism, agents take two steps to form coalitions: i) agents in each sector form loosely-coupled coalitions in order to decrease the complexity of the negotiation, and ii) agents form coalitions across sectors in order to deliver goods to end customers. We provide an example of how they can help agents form coalitions successfully