A dynamic multiagent system based on a negotiation mechanism for product family design

Many organizations are expending enormous efforts to minimize cost and time when developing new products by sharing and reusing distributed design knowledge and information. Multiagent systems provide an ideal mechanism to develop various products efficiently and cost-effectively by integrating distributed design knowledge and information. Product family design entails developing a set of differentiated products around a platform, while targeting individual products to distinct market segments. This paper presents a mathematical model reflecting the tradeoffs; inherent in having a platform and introduces a dynamic multiagent system (DMAS) based on negotiation mechanisms to address the model effectively. The negotiation protocol to design a platform is developed using market-based auction mechanisms. In the proposed system, specific design tasks are assigned to agents by decomposing tasks for product family design, and an optimal platform is determined by negotiations between agents. We apply the DMAS to design a platform for a family of power tools. Note to Practitioners-This research is motivated by the problem of determining a module-based platform during product family design. The growing number of electronic markets in product development has significantly increased information related to design and the complexity of its transactions, making it difficult to control the electronic markets with human resources. Agent-based technologies provide a natural approach to achieve information integration in a distributed environment. This paper proposes a DMAS based on negotiation mechanisms to support product family design in an electronic market environment. This paper illustrates how to use a market-based negotiation mechanism to determine a new platform using a case study. Future research efforts will be focused on improving the DMAS and extending its application to web-based product family design.