Trends of globalization and advances in Information Technology (IT) have created opportunity in collaborative manufacturing across national borders. A dynamic supply chain utilizes these advances to enable more flexibility in business cooperation. This research proposes a concurrent decision making framework for a three echelons dynamic supply chain model. The dynamic supply chain is formed by autonomous negotiation among agents based on multi agents approach. Instead of generating negotiation aspects (such as amount, price and due date) arbitrary, this framework proposes to utilize the information available at operational level of an organization in order to generate realistic negotiation aspect. The effectiveness of the proposed model is demonstrated by various case studies.

In a supply chain environment, reactive scheduling process has to deal with both operational objective (minimizing total tardiness) and business objective (accommodating a new order into the current schedule). Genetic algorithm (GA) optimization has been applied in such reactive scheduling problem for job shop style manufacturer in our previous researches. An algorithm is introduced to dynamically adjust the objective function of GA optimization to minimize cost of delay penalties and to maximize the number of contracts captured by the manufacturer. The effectiveness of the proposed model is demonstrated by computational experiments.

Trends of globalization and advances in Information Technology (IT) have created opportunity in collaborative manufacturing across national borders. A dynamic supply chain configuration is more adaptable by project based manufacturing environment characterize by the involvement of Small and Medium-sized Enterprises (SMEs). This research proposes a three echelons dynamic supply chain model where a job shop style manufacturer represents the center node being focused that will autonomously negotiates contracts with downstream client and upstream suppliers based on parameters derived from a reactive scheduling engine and an inventory management system. Furthermore a method is proposed to distribute delay penalties of previously contracted jobs to multiple new orders being negotiated simultaneously.

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