Nowadays, Virtual Enterprise (VE) is an important paradigm of business management in agile manufacturing environment. Clearly, there is a need for a mechanism through which these different functions can be integrated together. In this paper, we focus on negotiation process in VE formation to clarify its effective management. Each enterprise in VE is defined as agent with multi-utilities, and a framework of multi-agent programming with marketing science and N-person game theoretic approach is newly proposed as negotiation algorithm amongst the agents. We develop a computer simulation model to form VE through multiple negotiations amongst several potential members in the negotiation domain, and finally clarify the formation dynamism with the negotiation process.
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