• Title/Summary/Keyword: price negotiation

Search Result 62, Processing Time 0.03 seconds

Optimization-Based Buyer-Supplier Price Negotiation: Supporting Buyer's Scenarios with Suppler Selection

  • Lee, Pyoungsoo;Jeon, Dong-Han;Seo, Yong-Won
    • Journal of Distribution Science
    • /
    • v.15 no.6
    • /
    • pp.37-46
    • /
    • 2017
  • Purpose - The paper aims to propose an optimization model for supporting the buyer-seller negotiations. We consider the price, quality, and delivery as evaluation criteria, also recognized as objectives for negotiation. Research design, data, and methodology - The methodology used in this paper involves the input-oriented DEA with the inverse optimization. Under the existence of several potential suppliers, the price would be considered to be the decision variable to conclude the negotiation so as to meet the desired level of the quality and delivery. The data set for six suppliers with three criteria is examined by the proposed approach. Results - We present the decision aid model by displaying the price spectrum as the changes of desired output levels. It overcomes the shortcomings from previous researches mainly based on the discrete types of scenario generations. This approach shows that the obtained results help the buyer understand the trade-offs between price and performance when he/she considers the negotiation. Conclusions - The paper contributes to the numerical models for buyer-supplier negotiation in that the model for the supplier evaluation and selection is closely linked with the model for negotiation. In addition, it eliminates the unrealistic negotiation strategy, and provides the negotiation strategies that the buyer would not shift the burden on suppliers by maintaining the current efficiency.

Bi-directional Electricity Negotiation Scheme based on Deep Reinforcement Learning Algorithm in Smart Building Systems (스마트 빌딩 시스템을 위한 심층 강화학습 기반 양방향 전력거래 협상 기법)

  • Lee, Donggu;Lee, Jiyoung;Kyeong, Chanuk;Kim, Jin-Young
    • The Journal of the Institute of Internet, Broadcasting and Communication
    • /
    • v.21 no.5
    • /
    • pp.215-219
    • /
    • 2021
  • In this paper, we propose a deep reinforcement learning algorithm-based bi-directional electricity negotiation scheme that adjusts and propose the price they want to exchange for negotiation over smart building and utility grid. By employing a deep Q network algorithm, which is a kind of deep reinforcement learning algorithm, the proposed scheme adjusts the price proposal of smart building and utility grid. From the simulation results, it can be verified that consensus on electricity price negotiation requires average of 43.78 negotiation process. The negotiation process under simulation settings and scenario can also be confirmed through the simulation results.

The Study of Reserve Price Reporting Mechanisms: A New Mechanism for Negotiation Support Systems (유보가격 보고 메커니즘을 이용한 협상거래 지원시스템 효율 증대 방안 연구)

  • Shang, Wei;Kwon, Seung-Woo;Lie, Yi-Jun;Yoo, Byung-Joon
    • Asia pacific journal of information systems
    • /
    • v.17 no.1
    • /
    • pp.59-76
    • /
    • 2007
  • Information and Communication Technologies (ICT) changed our everyday business drastically. Business routines have been transformed to online activities. New theories and models were developed for the brand new online environment. For online negotiations, however, the research on new mechanisms is not enough, especially for bilateral distributive negotiations. A reserve price reporting mechanism (RPR) together with its extended version (ERPR) is proposed in this paper. The key improvement of reserve price reporting mechanisms is to let the negotiators report their reserve price to a third-party system before they actually start the negotiation. A prototype of this RPR system is developed and a lab experiment is conducted to test the performance of the two mechanisms compared with traditional direct bargaining (TDB) mechanism. The results of the experiment support that the reserve price report mechanisms proposed are more efficient than the traditional one in several dimensions including social welfare.

FACILITATING NEGOTIATIONS IN AGENT MEDIATED ELECTRONIC COMMERCE

  • Miao, Chunyan;Goh, Agenla;Yang, Zhonghua
    • Proceedings of the Korea Inteligent Information System Society Conference
    • /
    • 2001.01a
    • /
    • pp.16-22
    • /
    • 2001
  • There is no doubt that agents play an increasingly predominant role in e-commerce, whether these are business-to-consumer or business-to-business applications. However most of the current e-commerce agents only support a single bid for a product at a fixed price. Although price is an important factor, it is not the only concern of both business and consumer. There is doubt as to whether such agents satisfv both parties. Negotiation on a variety of issues is needed in order to reach an agreement. In this paper, a computational agent negotiation(CAN) model is proposed to facilitate multiple-issue negotiation via an agent. The main contribution of the CAN model is it enables agent to participate actively in the negotiation with various feedback instead of simply an agreement or rejection.

  • PDF

A Multi-Agent Negotiation System with Negotiation Models Changeable According to the Bargaining Environment

  • Ha, Sung-Ho;Kim, Dong-Sup
    • Journal of Information Technology Applications and Management
    • /
    • v.16 no.1
    • /
    • pp.1-20
    • /
    • 2009
  • Negotiation is a process of reaching an agreement on the terms of a transaction. such as price, quantity, for two or more parties. Negotiation tries to maximize the benefits for all parties concerned. instead of using human-based negotiation. the e-commerce environment provides such an environment as adopting automated negotiation. Thus. choosing agent technology is appropriate for an automatic electronic negotiation platform. since autonomous software agents strive for the best deal on behalf of the human participants. Negotiation agents need a clear-cut definition of negotiation models or strategies. In reality, most bargaining systems embody nearly one negotiation model. In this article. we present a mobile agent negotiation system with reusable negotiation strategies that allows agents to dynamically embody a user's favorite negotiation strategy which can be preinstalled as a component in the system. We develop a prototype system, which is fully implemented in compliance with FIPA specifications, and then. describe the benefits of using the system.

  • PDF

Development of an Automated Negotiation System using Multi-Agent Technology (멀티에이전트 기반 자동협상시스템 개발)

  • Choi, Hyung-Rim;Kim, Hyun-Soo;Hong, Soon-Goo;Park, Young-Jae;Park, Yong-Sung;Kang, Moo-Hong
    • IE interfaces
    • /
    • v.18 no.1
    • /
    • pp.44-51
    • /
    • 2005
  • The rapid expansion of the Internet-related technology has changed the current commercial transaction process. In the physical commercial transaction, most deals are accomplished through the negotiation process except a fixed price system. Thus, the negotiation is essential to conclude the business transactions. Especially, under the e-commerce environment, an automated negotiation system is necessary to respond quickly and flexibly to the diverse environmental changes and also to perform negotiations consistently and effectively. To this end, we develop an automated negotiation system using multi-agent technology. This new system includes such functions as creating negotiation proposals automatically, evaluating the counterpart’ proposals, and preparing counter offers.

Multi-agent Negotiation System for Class Scheduling

  • Gwon Cheol Hyeon;Park Seong Ju
    • Proceedings of the Korean Operations and Management Science Society Conference
    • /
    • 2002.05a
    • /
    • pp.863-870
    • /
    • 2002
  • The current class scheduling has difficulties in reflecting students' preferences for the classes that they want to take and forecasting the demands of classes. Also, it is usually a repetitive and tedious work to allocate classes to limited time and cesourres Although many research studios in task allocation and meeting scheduling intend to solve similar problems, they have limitations to be directly applied to the class-scheduling problem. In this paper. a class scheduling system using multi agents-based negotiation is suggested. This system consists of student agents, professor agents and negotiation agents each agent arts in accordance with its respective human user's preference and performs the repetitive and tedious process instead of the user The suggested system utilizes negotiation cost concept to derive coalition in the agent's negotiation. The negotiation cost is derived from users' bidding prices on classes, where each biding price represents a user's preference on a selected class. The experiments were performed to verify the negotiation model in the scheduling system. The result of the experiment showed that it could produce a feasible scheduling solution minimizing the negotiation cost and reflecting the users' performance. The performance of the experiments was evaluated by a class success ratio.

  • PDF

A Design of the Semantic Web for Collaborative Agents in Supply Chain Formation (공급사슬구성에서 협력적 에이전트를 위한 시맨틱 웹 설계)

  • Kim, Hyun-Soo;Cho, Jae-Hyung;Choi, Hyung-Rim;Hong, Soon-Goo
    • The Journal of Information Systems
    • /
    • v.13 no.2
    • /
    • pp.135-153
    • /
    • 2004
  • The formation of a supply chain should be approached with distributive viewpoint considering the dynamic nature of ordering environments. The purpose of this paper is to design a semantic web to support agent negotiation forming supply chains. With the view of a supply chain as composed of competitive agents which represent each member of supply chains with a local goal, a supply chain is formed through negotiation of price, due date choosing partners to contract. In the development of a negotiation method, we employ ontology and rules which are the basic techniques of the semantic web for supporting automated negotiations. Especially, a framework for a negotiation process is suggested and domain, processes and rules ontology are designed interrelatedly. With this modeling, a possibility of the semantic web based agent negotiation is suggested.

  • PDF

Multi-lateral Concurrent Automated Negotiation for Optimal Freight Settlement (최적 수송가격 결정을 위한 다자간 동시 자동협상 방법론 개발)

  • Park, Yong-Sung;Cho, Min-Je;Choi, Hyung-Rim;Kim, Hyun-Soo;Hong, Soon-Goo
    • Journal of Information Technology Services
    • /
    • v.7 no.2
    • /
    • pp.1-12
    • /
    • 2008
  • The development of IT and explosively growing number of Internet users are rapidly spreading and developing e-commerce, while creating diverse on-line transaction methods such as a negotiation, a reverse auction, and a bid. Among these transaction methods, the transactions by means of a negotiation are being made for goods that have no posted price. In particular, the transactions by means of a negotiation are expected to be widely used in the B2B. In order to determine their transportation costs, shippers usually make negotiations with many transporters and logistics companies. And before long, these negotiations are expected to be made on an on-line automated negotiation system. Because of this, this study has tried to develop an automated negotiation methodology that is absolutely necessary for an on-line automated negotiation. This study has estimated and selected the evaluation functions for multi-lateral negotiators' proposals, thus developing an automated negotiation methodology. As a result of this study, a new direction for an automated negotiation has been suggested. Also we expect that this study will be widely used in the automated negotiation of diverse fields.

A Study about the Legal Nature of Negotiations between NHIS and Pharmaceutical Company (국민건강보험공단과 제약사 간 의약품 관련 협상 행위의 법적 성격에 관한 고찰)

  • DUCKGYU JANG
    • The Korean Society of Law and Medicine
    • /
    • v.23 no.4
    • /
    • pp.3-28
    • /
    • 2022
  • Recently, the targets and clauses of negotiation between 'National Health Insurance Service (NHIS)' and Pharmaceutical companies has been expanded. Due to newly adopted 'Quality management clause', 'Compulsory supply maintenance clause' and 'Penalty for breach of contract clause', not only 'Ministry of Health and Wellfare (MOHW)'s 'drug listing' and 'Price cap' announcement, but also 'negotiation between NHIS and pharmaceutical companies' can be a legal sanction to the suppliers. Once secretary of MOHW order NHIS to negotiate with pharmaceutical company, NHIS notify this order to the company and enter into the negotiation. 'The order' exists in the public domain between the government (MOHW) and public institutions (NHIS) and does not constrain the legal rights of companies (Therefore companies cannot pile a lawsuit about the order). However, 'the notice' or 'negotiation' is an act which has a counterpart, can be a target of administrative litigation if the company get some disadvantages from the talks. Negotiations can be divided into four types according to "the target (whether it is listed on the insurance benefit list)" and "the purpose (whether the target is price or conditional)." In particular, negotiations on listed drugs, whose goal is to set unfavorable conditions for companies, can be illegal if there is no price. So we need to consider compensation for the company as an incentive to negotiate.