Autonomous negotiation for resource allocation of multiple sectors in the TFT-LCD manufacturing industry

Abstract In a global TFT-LCD manufacturing enterprise, a central planning sector promises orders to maximize profit, while the production sector is responsible for minimizing costs and meeting delivery deadline. The two sectors frequently struggle with different preferences. The contradictory objectives raise conflict between the two sectors when developing an entire resource allocation plan for the enterprise. This study presents a novel negotiation framework and develops a mutually acceptable resource allocation plan via autonomous negotiation between sectors with different preferences. A mathematical model considering the major characters of the TFT-LCD industry is formulated. Individual sectors can employ preferred negotiation tactics to achieve their objectives with an acceptable level of trade-off. This study examines various negotiation tactics and compares the proposed decentralized model with a centralized solution. Negotiation experiments demonstrate a good resource allocation plan over a short time and the conflict between sectors can be resolved efficiently. The proposed autonomous negotiation facilitates smart operations management.