Testing Overtime Policies with Different Price and Due Date Negotiation Strategies
Management and Entrepreneurship
Today, organizations use of e-commerce tools for purchasing and sales have developed from e-catalogs and e-mail to e-auctions. This research simulated such a fully automated negotiation system for business transactions to test the best overtime policies to use with different decision rules for price and due date. Software within e-commerce systems negotiates prices and due dates using pre-thought out negotiation strategies. This research tests tested the effect of several overtime policies with different price and due date negotiation strategies. It used a simulation of a job shop and an imaginary market to demonstrate how one can compare different combinations of overtime policies and negotiation strategies in different markets. It extends previous research by including the option of using flexible overtime both at the quotation stage and during shop operation. The research suggested that simulation testing of negotiation and overtime strategies for firms and their markets is a practical way of choosing overtime policies.