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Interdependent order allocation in the two-echelon competitive and cooperative supply chain

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  • Jian Wang
  • Huimin Miao
  • Mingzhu Yu

Abstract

In this paper, we consider an order allocation problem in a two-echelon supply chain with multiple suppliers and multiple demanders. The orders from the demanders are interdependent in terms of execution sequence. We consider both the competition and cooperation relationships between the suppliers and demanders. We provide formal definition for the order allocation problem and propose a negotiation mechanism which includes a two-stage negotiation protocol and two heuristic negotiation algorithms. Different negotiation strategies are proposed for the demanders and suppliers to resolve the order interdependency and competition conflict. An automated negotiation approach is introduced to implement the negotiation mechanism. The computational experiments show that orders under different supply chain contexts can be allocated with high success rate. We also numerically compare the influence of different negotiation strategies and investigate the interaction of conflict resolutions.

Suggested Citation

  • Jian Wang & Huimin Miao & Mingzhu Yu, 2019. "Interdependent order allocation in the two-echelon competitive and cooperative supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 57(4), pages 1190-1213, February.
    • Handle: RePEc:taf:tprsxx:v:57:y:2019:i:4:p:1190-1213
    DOI: 10.1080/00207543.2018.1504171
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    Cited by:

    1. Imre Dobos & Gyöngyi Vörösmarty, 2021. "Green supplier selection using a common weights analysis of DEA and EOQ types of order allocation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(3), pages 612-621, April.

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