Systems, Man, and Cybernetics

 

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• [P1221] Auction-Based Negotiation Mechanism for Integrated Due Date Management
  Author(s): Chun Wang
  
  

  Abstract
  This paper proposes an auction-based multilateral negotiation mechanism for collaborative integrated DDM decision making. We assume a specific e-Supply Chain setting, in which a supplier supplies a group of customers. Due to limited production capacity within a scheduling time window (e.g. a specific season of the year), not all customers' due date requirements can be accommodated. The supplier wants to allocate resources to the customers who value them most. On the other hand, without considering other customers' benefits, a customer has the incentive to misreport the due dates in order to get his/her orders processed earlier. This competition for the use of production resources among self-interested customers poses a strategic challenge in due date management systems design. To make the resource allocation efficient, we present an iterative auction framework to coordinate the allocation process and to align customers' self-interests to the overall system performance. Our purpose is to provide a decentralized decision support tool which enables the integration of key due date management decisions in the e-Supply Chain environment.

  
   

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