Research of buyer-supplier relationship based on agent approach

Alliances bring firms some advantages. A good and stable buyer-supplier relationship is crucial in a firm alliance. In this study, we develop an agent-based model to study how the myopic behavior of retailer in a distributed supply chain affects the whole supply chain alliance. We investigate the effect of firm's myopic behavior both in stable and dynamic environment including competition for price and orders. Simulation results show that the retailer's myopic behavior reduces the revenue remarkably both in stable and dynamic environment. When market has more competitors the retailer should maintain the long-term relationship even further. The order's lead-time affects the relationship differently in long-term contract and short-term contract.