Negotiation Automation Platform
5 CASE STUDIES
This section introduces three case studies of NAP solutions . The first case study involves automating procurement negotiations for electronic components against a human negotiation counterparty . For this case , we conducted experiments by introducing virtual fluctuations into the demand patterns . The second case study focuses on automating parts procurement and sales negotiations for automobiles , in which the counterparties also use AI agents for negotiation .
We conducted simulations where the negotiation for completed car sales and the procurement of missing parts were simultaneously and consistently executed , considering manufacturing lead time and pricing . The third case study involves automating procurement negotiations for air transport slots with carriers using AI negotiators and sales negotiations for transportation services with human clients . This case also simulates the simultaneous and consistent execution of combined procurement and sales negotiations .
5.1 ELECTRONIC COMPONENT PROCUREMENT
This section presents a case study of Automated Negotiation in manufacturing , focusing on procuring electronic components . Production plans are updated daily based on customer orders , and coordination regarding component delivery dates is needed . This coordination is frequent and costly .
Specifically , delivery date coordination can occur in cases such as :
• When a supplier informs that the delivery date for a component is delayed .
• When customer orders exceed or are significantly lower than initial forecasts .
• When some components are not available and production quantities need to be adjusted .
Delivery date coordination can have a ripple effect along the supply chain ( Figure 5-1 ): 1 . The customer requests to accelerate the delivery date .
2 . The factory checks its production and delivery plans . The factory finds that procurement of some necessary components must be expedited . The factory then starts negotiations with the component supplier ( trading company ).
3 . The component supplier , in turn , must negotiate with their parts suppliers to expedite delivery .
4 . All negotiations are agreed upon , and the acceleration of delivery dates is accomplished .
Journal of Innovation 69