Comparative analysis of negotiation based information sharing in agent-based supply chains

A supply chain can be defined as a connected series of activities which is concerned with planning, coordinating and controlling materials, parts and finished goods from supplier to customer [G.C. Stevens, (1989)]. Coordination plays a pivotal role in the successful design and implementation of supply chains, especially for those which are formed by independent and autonomous companies. Information sharing has widely been regarded as an essential tool to coordinate supply chains activities. This paper analyzes the effects of negotiation based information sharing in a distributed make-to-order (MTO) manufacturing supply chain, which is modelled as a multi-agent system. Information can only be exchanged through negotiation in the agent-based framework, which is not the same as quoted in the literature such that shared information is available anytime. Simulation results indicate that partial information sharing in the system has comparable performance in terms of total cost and fill rate against full information sharing based on negotiation. Considering the associated cost and limitations to achieve full information sharing, partial information sharing may be more practical in real applications.