Mediator based negotiations for order acceptance decision

This paper develops a method for simultaneous negotiations between the manufacturer and customers on multiple issues for order acceptance decision under the presence of mediator. The method considers a framework where manufacturer plans their production system, generates offer on negotiating issues, and submit it to the mediator. Similarly, the customer based on their aspiration level for a given negotiation round will also generate their offer and submit it to the mediator. After receiving offers, mediator will decide whether the negotiating parties can reach agreement at a current round or else further negotiation is necessary. In the latter case, mediator will provides implicit information to negotiating parties about the criticality of their offers. The parties based on this information, will then revise their offer for the next round. The cycle is repeated until agreement can be reached between the negotiating parties. Numerical example is presented to illustrate working mechanism of proposed method.