Optimizing negotiation process of buyer-supplier collaboration in the gambier supply chain

Abstract

Abstract The current gambier supply chain presents the disparity issue in profit distribution between the business actors. This issue could be analyzed regarding the collaboration that exists between the involved parties, particularly in the negotiation process. The present study aims to develop an optimization model of the negotiation process between supplier (farmers) and collector (buyer) in gambier supply chain. In a decentralized supply chain setting, the linear programming is applied to develop the optimization planning model for both players. Optimized models were built to align the order level of buyers and the supply quantity of suppliers. The proposed negotiation process is applied iteratively to align the order and supply quantity. The developed models have been verified through computational testing using both real and estimated data. Practical implication of the research results can assist the related actors in the gambier supply chain.