We propose an automated negotiation for a reinforcement learning agent to adapt the agent to unexpected situations such as demand changes in supply chain management (SCM). Existing studies that consider reinforcement learning and SCM assume a centralized environment where the coordination of chain components is hierarchical rather than through negotiations between agents. This study focused on a negotiation agent that considered the value function of reinforcement learning for SCM as its utility function in automated negotiation. We demonstrated that the proposed approach could avoid inventory shortages under increased demand requests from the terminal customer.

This study proposed a novel reward-based negotiating agent strategy using an issue-based represented deep policy network. We compared the negotiation strategies with reinforcement learning (RL) by the tournaments toward heuristics-based champion agents in multi-issue negotiation. A bilateral multi-issue negotiation in which the two agents exchange offers in turn was considered. Existing RL architectures for a negotiation strategy incorporate rich utility function that provides concrete information even though the rewards of RL are considered as generalized signals in practice. Additionally, in existing reinforcement learning architectures for negotiation strategies, both the issue-based representations of the negotiation problems and the policy network to improve the scalability of negotiation domains are yet to be considered. This study proposed a novel reward-based negotiation strategy through deep RL by considering an issue-based represented deep policy network for multi-issue negotiation. Comparative studies analyzed the significant properties of negotiation strategies with RL. The results revealed that the policy-based learning agents with issue-based representations achieved comparable or higher utility than the state-of-the-art baselines with RL and heuristics, especially in the large-sized domains. Additionally, negotiation strategies with RL based on the policy network can achieve agreements by effectively using each step.

Previous research on the comprehensive negotiation strategy using deep reinforcement learning (RL) has scalability issues of not performing effectively in the large-sized domains. We improve negotiation strategy via deep RL by considering an issue-based represented deep policy network to deal with multi-issue negotiation. The architecture of the proposed learning agent considers the characteristics of multi-issue negotiation domains and policy-based learning. We demonstrate that proposed method achieve equivalent or higher utility than existing negotiation agents in the large-sized domains.