Modeling Buyer-Supplier Relationships in Dynamic Supply Chains

The key part of dynamic supply chain management is negotiating with suppliers and with buyers. Designing efficient business processes throughout the supply chain, and controlling their speed, timing, and interaction with one another, is decisive factors in a competitive and dynamic environment. Coordination is essential for successful supply chain management. Therefore, in this chapter, a novel Negotiation-to-Coordinate (N2C) mechanism is proposed to explore the interactive nature of the buyersupplier relationships for dynamic environments. The proposed N2C mechanism uses prioritized fuzzy constraints to represent trade-offs among the different probable values associated with the negotiation issues and to signify how agents should make concessions. Supervisor agent in the N2C mechanism takes into account the conflicts of interest of buyer’s agent and supplier’s agent and the proposal and plan generated by supervisor agents helps in resolving the true and potential conflicts of interests for buyer’s agent and supplier’s agent. The proposed computational framework based on fuzzy constraints is suited for capturing the dynamics by modeling trade-offs between different attributes of a product leading to a fair and equitable deal for both suppliers and buyers. The proposed approach models the intricacies in the face of the imprecise, uncertain and conflicting nature of objectives. The efficacy of the proposed approach is demonstrated through an illustrative example.