A fuzzy-based negotiation approach for collaborative planning in manufacturing supply chains

The coordination of the planning operations across the manufacturing supply chains (MSC) is considered as a major component of supply chain management. As centralized coordination requires relevant information sharing, alternative approaches are needed to synchronize production plans between partners of MSC characterized by decentralized decision making systems with limited information sharing. In this paper, a bi-level fuzzy-based negotiation approach is proposed in order to model collaborative planning between MSC partners. During negotiation, each manufacturer is optimizing a bi-objective planning model. In order to generate optimal production plans, a genetic algorithm is used. To evaluate the exchanged proposals and the satisfaction degree of each partner, the fuzzy logic approach is adopted in the both negotiation levels. The main result of the developed approach consists in a collaborative decision making mechanism allowing the MSC partners to define their optimal production plans while considering the whole negotiating process with the pre-negotiation and post-negotiation stages. Computational tests done for different MSC structures show the effectiveness of the proposed mechanism, which ensures the satisfaction of the manufacturers and the optimality of the final solution. By comparing the results with the ones obtained considering a centralized planning approach, it is shown that the developed negotiation mechanism yields to near optimal solutions with insignificant gaps from the global optimal solutions.