Economic model of TAC SCM game

Author

Zhang, Dongmo ; Zhao, Kanghua

Author_Institution

Sch. of Comput. & Inf. Technol., Western Sydney Univ., NSW, Australia

fYear

2004

Firstpage

273

Lastpage

280

Abstract

This work presents an economic model to the problem of supply chain management in trading agent competition (TAC SCM). The TAC SCM marketplace is characterized by the combination of quantity competition and price competition between manufacturers (agents). We specify the quantity competition by a variation of Cournot model and view the price competition as an extension of Bertrand game. An approach of smooth-regression is introduced to copy with the non-linear fluctuation of product price by using linear price model. The results of the paper provide the solutions to the decision-making problems in TAC SCM trading agent design, including daily production, product pricing and component procuring.

Keywords

electronic commerce; forecasting theory; game theory; multi-agent systems; pricing; supply chain management; Bertrand game; Cournot model; TAC SCM game; TAC SCM marketplace; TAC SCM trading agent design; component procuring; daily production; decision-making problems; economic model; linear price model; nonlinear fluctuation; price competition; product price; product pricing; quantity competition; smooth-regression; supply chain management; trading agent competition; Assembly; Computer aided manufacturing; Decision making; Fluctuations; Game theory; Pricing; Production; Supply chain management; Supply chains; Virtual manufacturing;

fLanguage

English

Publisher

ieee

Conference_Titel

Intelligent Agent Technology, 2004. (IAT 2004). Proceedings. IEEE/WIC/ACM International Conference on

Print_ISBN

0-7695-2101-0

Type

conf

DOI

10.1109/IAT.2004.1342955

Filename

1342955