An agent-based negotiation model to support partner selection in a virtual enterprise

Abstract

In response to the global business competitive environment, it is common for several companies to participate in a virtual enterprise (VE) to cooperate and collaborate dynamically to complete a common business opportunity. This paper proposes an agent-based negotiation model to support the partner selection process in a VE. To begin with, the VE partner selection problem is abstracted as a buyer-seller relationship such that the VE initiator is the buyer and the VE partners are sellers or vice verse. In the multi-agent system (MAS) that supports the proposed negotiation model, autonomous agents are established to represent various parties and functions of the VE. For instance, a buyer agent represents the VE initiator and the potential partners are represented by seller agents. Thus, the VE partner evaluation and selection problem is the process of finding the partners that are able to provide the buyer with the right quality products and services at the right price and at the right time. Evaluation and selection of partners is a typical multiattribute decision making (MADM) problem involving various issues that can both be qualitative and quantitative.