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A Multi-attribute NSS for Purchasing Negotiation H.-S. SHIH*, H.-J. Shyur, C.-C. Chou Tamkang University, Taipei, Taiwan, ROC firstname.lastname@example.org* January 7, 2008 Hsu-Shih Shih Ph.D., Industrial Engineering, Kansas State University, USA Major Interests – Decision analysis (MODM, MADM, GDM) – Decision support (GDSS, NSS) – Operations research (LP, DP, Network flows) – Soft computing (Neural network, Fuzzy) Website – http://bluejay.ms.tku.edu.tw (220.127.116.11) MCDM 2008, Auckland, New Zealand Outline Purpose Purchasing Negotiation Negotiation Support Systems Multi-criteria Analysis Basic Framework Demonstration Future Studies MCDM 2008, Auckland, New Zealand Purpose Implementation of an integrating multi- attribute negotiation support system (NSS) for purchasing Consideration of multiple attributes for evaluation instead of single/a few attributes Establishment of a platform on Windows- based networked PCs for 1 to 1/many negotiation for a buyer and vendor(s) MCDM 2008, Auckland, New Zealand Purchasing The Most Important Activity in Business – Over 60% of the amount of total sale, even up to 90%'s for Taiwanese manufacturers of notebook computers – An opportunity for increasing profits under carefully control The Most Concerned Attributes – Quality (screened) – Price, quantity, due date, delivery vehicles, trade credits An Efficient Work Being Reached – A realization of e-procurement MCDM 2008, Auckland, New Zealand Keeney & Raiffa 1976 Negotiation Negotiation – A give-and-take interchange among multiple participants that proceeds until all agree on a particular alternative (or a breakdown occurs to terminate the negotiation). – Usually not obtaining an optimal solution Negotiation Process – Negotiation processes are complex and self-organizing involving multiplayer, multi-criteria, ill-structured, evolving, dynamic problems. Holsapple & Whinston 1996 MCDM 2008, Auckland, New Zealand Shakun 1993 Negotiation Support Systems I Negotiation support systems (NSS) – A (computer-based) system that helps those involved in a negotiation to reach an agreement. – One special kind of group decision support systems (GDSS) MCDM 2008, Auckland, New Zealand Holsapple & Whinston 1996 Negotiation Support Systems II General Architecture MCDM 2008, Auckland, New Zealand Lei & Feng 2004 Negotiation Support Systems III Some Ingredients – Issues: the matter of contention; several aspects/dimensions – Participants: persons and computers – Acceptance region – Locations: a particular position in an issue space – Strategies: for coalition formation – Movements: locations for moving – Rules of negotiation: for allowed interactions among participants – Intervenors: active agents to help participants to reach an agreement MCDM 2008, Auckland, New Zealand Lai 1989 Basic Framework NSS MCDM 2008, Auckland, New Zealand Holsapple et al. 1998 Zone of Agreement for Bargaining MCDM 2008, Auckland, New Zealand Raiffa 1982 Trade-offs Strategies Time/Resource Dependent – Current time versus remaining time Behavior Dependent – Tit-for-tat E.g., cost reducing MCDM 2008, Auckland, New Zealand Faratin et al. 1998 Multiple Criteria Analysis I Utility Functions with Risk Tolerance – Risk-averse, Risk-neutral, and Risk-seeking – Monotonic increasing function (the larger the better) – Monotonic decreasing function (the smaller the better) – Bell-shaped function (the more nominal the better) MCDM 2008, Auckland, New Zealand Keeney & Raiffa 1976 Multiple Criteria Analysis II Unity on Each Dimension Weights Obtained from AHP MCDM 2008, Auckland, New Zealand System Description System – Windows XP, Asp.net, SQL 2000 – Computers Database – 300+ items of electronic parts under three levels for test Participants – Manufacturer, manufacturer's agent, mediator, vendors, vendors' agent MCDM 2008, Auckland, New Zealand Demonstration I Negotiation Condition Settings MCDM 2008, Auckland, New Zealand Demonstration II Negotiation Failure – time limit MCDM 2008, Auckland, New Zealand Demonstration III Negotiation Reached MCDM 2008, Auckland, New Zealand Future Studies English Language Interface Application of Critical Items Purchasing Prospect Theory Instead of Utility Theory – S-shaped value function MCDM 2008, Auckland, New Zealand Critical Items Purchasing Dimensions MCDM 2008, Auckland, New Zealand Gelderman & Semeijn 2006 Prospective Theory S-shaped Curve MCDM 2008, Auckland, New Zealand Kahneman & Tversky 1979 References H.-J. Shyur, H.-S. Shih (2006), A Hybrid MCDM Model for Strategic Vendor Selection. Mathematical and Computer Modelling, 44(7-8), 749-761. H.-S. Shih, L.-C. Huang, H.-J. Shyur (2005), Recruitment and Selection Processes through an Effective GDSS. Computers and Mathematics with Applications, 50(10-12), 1543-1558. H.-S. Shih, C.-H. Wang, E.S. Lee (2004), A Multiattribute GDSS for Aiding Problem-solving. Mathematical and Computer Modelling, 39(11-12), 1397-1412. MCDM 2008, Auckland, New Zealand Q&A Thank you for your comments. MCDM 2008, Auckland, New Zealand
"A Multi-attribute NSS for Purchasing Negotiation"