Decentralized Supply Chains Coordination under Uncertain Competitiveness

The coordination of decentralized multi-site multi-product manufacturing SCs is achieved through Scenario-Based Negotiations (SBNs) based on expected winwin principles in an uncertain competitive environment. Based on the nonsymmetric roles of the different actors, the client (SC leader) is supposed to propose coordination contracts according to its best expected conditions, taking into account the uncertain reaction of the provider (follower). This uncertain reaction is modeled as a probability of acceptance, computed according to the overall scenario conditions, which include the presence of third parties. Different negotiation scenarios are analyzed considering i) Standalone, ii) Cooperative, and iii) Non-Cooperative cases. The resulting MINLP tactical models are illustrated using a case study with different providers (follower SCs) around a client (SC leader) interacting in a global decentralized scenario. The NonCooperative Negotiation Scenario (nCNS) proves to identify the situation with, higher independent profit expectations, while cooperation would lead to higher overall profit. Moreover, the proposed approach shows the importance of considering the uncertainty associated with the response of the followers to the leader's decision-making, resulting from a wider knowledge of its options.