Proceedings of the 33rd Hawaii International Conference on System Sciences - 2000 Supply Chain Process and Agent Design for E-Commerce Mark E. Nissen Naval Postgraduate School [email protected] Abstract Supply chain management represents a critical competency in today’s fast-paced, global business environment. But neither EDI nor Web-based supply chain applications can enable both the process integration and flexibility demanded in the business environment of today. In contrast, intelligent agents offer potential and capability for buyer-seller integration and flexibility, and early applications show great promise for supply chain integration through agent technology. However, agent technology remains relatively immature, and we have yet to establish, test and verify good design principles and techniques like those now well established for other, more conventional software technologies. The research described in this paper builds upon recent work on agent-based supply chain integration to propose a set of techniques and tools to integrate process and agent design for the supply chain in an e-commerce context. Preliminary results from implementation include successful development of a supply chain agent federation and demonstration of its effective performance in a socially-conforming manner along the supply chain. Implications of this work with respect to the e-commerce context include the potential for rapid agent development by end users themselves. And research along the lines of this investigation may have a profound impact on the manner in which e-commerce applications are designed and developed in the near future. 1. Supply chain development challenges Supply chain management represents a critical competency in today’s fast-paced, global business environment, and a number of effective practices (e.g., just-in-time deliveries, electronic data interchange (EDI), supplier inventory management) are employed to improve the competitiveness and efficiency of enterprises around the world. Our two decades of experience with EDI suggests commercial processes employed by buyers and sellers must be mutually compatible in order for business exchanges and transactions to occur effectively. And to support the kinds of rapid purchase and responsive order fulfillment required for e-commerce today, these buyer and seller processes must also be closely integrated [16]. Presently, such integration is practically ensured through the kinds of rigid EDI links established between trading partners. However, the dynamic, unpredictable business environment of today further demands considerable process flexibility along the supply chain, as a firm’s set of commercial suppliers, customers, trading partners and even strategic allies—together defining its supply chain topology—may now shift both abruptly and frequently. EDI does not offer the flexibility required to accommodate such abrupt and frequent change, nor does it conform to accommodate the diverse and idiosyncratic preferences and work habits of specific individuals within the organization. Thus, many firms are turning their attention toward Web-based support for commercial transactions (e.g., intranets/extranets, electronic catalogs and storefronts, virtual malls). Unfortunately, even such Web-based e-commerce applications do not satisfy these joint requirements for process integration and flexibility, as most Web-based supply chain technologies are developed predominately for either the buyer or seller, but not both; that is, they fail to closely integrate buyer and seller processes. A relatively novel stream of research follows [1] and others (e.g., [2, 7, 15, 17]) to argue intelligent agents offer potential and capability for buyer-seller integration and flexibility. In other words, software agents developed specifically for the supply chain may support the ability to closely integrate buyer and seller processes as well as provide sufficient flexibility to keep-up with changes to supply chain topologies and operations, in addition to being tailorable to meet the diverse needs, preferences and work habits of individuals in the organization. For instance, individual agents can be endowed with sufficient intelligence to act autonomously in certain circumstances and be empowered make responsible decisions on behalf their principals. This enables such agents to faithfully represent their principals’ interests in commerce, as opposed to simply retrieving product information or executing user-directed purchase transactions. These latter, limited capabilities are characteristic of most e-commerce applications in use today. Individual agents are also easily conformable to 0-7695-0493-0/00 $10.00 (c) 2000 IEEE 1 Proceedings of the 33rd Hawaii International Conference on System Sciences - 2000 their users’ preferences, and intelligent agents can be easily cloned, specialized and adapted to accommodate various business practices of new or changing suppliers, customers and other trading partners. This offers flexibility unparalleled by extant object-oriented, clientserver and distributed systems employed in this domain. Moreover, groups of agents participating in multi-agent systems can collaborate through federations to solve problems too large or complex for individuals to address by themselves. This supports close coupling and tight integration between buyer and seller organizations. But despite these potential advantages, agent technology remains relatively immature, and we have yet to establish, test and verify good design principles and techniques (cf. [19]) like those now well established for object-oriented design, client-server development, expert systems implementation and other, more mature technological areas. And most agent applications today are developed by people with doctorates in computer science, as opposed to buyers and sellers in the enterprise (e.g., business managers and professionals). This situation is similar in many respects to the early days of expert systems, most notably before the advent of expert system “shells” to facilitate rapid application development. The research described in this paper builds upon recent work on agent-based supply chain integration to propose a set of techniques and tools to integrate process and agent design for the supply chain in an e-commerce context. To demonstrate the use and utility of this proposed approach, such techniques and tools are employed and discussed with respect to a proof-ofconcept agent federation designed and developed specifically for enterprise supply chain integration. The structured, graphical nature of these techniques and tools provides some indication the task of agent development may become less onerous and demanding, particularly as the corresponding developmental technologies continue to mature. Paralleling advances enabled by expert system shell tools, this offers the prospect of reducing both the skill level and cycle time required to develop agent applications. In the sections that follow, we first provide some background information pertaining to intelligent agents. We then describe an integrated approach to supply chain process and corresponding agent design. Some preliminary results from design and implementation using these techniques and tools are discussed in turn. The paper then summarizes key conclusions and presents a number of suggestions for future research along these lines. 2. Intelligent agent background Work in the area of software agents has been ongoing for some time, and it addresses a broad array of applications (e.g., see [8]). Although researchers have yet to reach consensus on how the term intelligent agent should be defined, many common attributes (e.g., autonomy, intelligence, mobility, collaboration) are beginning to emerge through the literature (e.g., see [5]). For purposes of this paper, an intelligent agent represents a software application capable of semi-autonomous behavior and decision making to represent the interests and preferences of its principal in an organizational context. This operational definition has both technical and organizational aspects. Technically, agents possess sufficient knowledge and inferential capability to behave in a manner that would be classified as “intelligent” if performed by a person. This enables their semiautonomous behavior and decision making (e.g., in determining which product attributes and sources to evaluate and making purchasing decisions). Organizationally, agents are entrusted with sufficient authority to make commitments for users in a sociallyconforming enterprise context. This enables them to represent their principals and adhere to the same corporate rules, policies and procedures (e.g., in entering into binding commercial transactions) required to be followed by people in the organization. Yet clearly, as computer-based applications, agents are comprised of the same kinds of software objects and methods used to develop other systems (e.g., distributed applications, client-server products, remotely-invokable applets, expert advisory systems) that do not carry the “agent” label. To our mind, agents are easily differentiated on the basis of their intelligent behavior and entrusted actions; that is, regardless of the underlying software elements that comprise agents or other, more traditional applications, a system's technical capabilities (e.g., intelligent behavior) and organizational use (e.g., entrusted representation) can differentiate an intelligent agent from other, conventional software applications. We feel the technology and use of agents autonomously performing commercial process activities along the enterprise supply chain serve to clearly distinguish them from non-agent applications in this domain. To further define and differentiate intelligent agents, we integrate the agent-taxonomy work of [5] with a threedimensional structure from [6] to develop the analytical framework presented in Figure 1. In this framework, we use the same intelligence and mobility dimensions noted by Gilbert et al., but with the substitution of the new dimension collaboration in lieu of autonomy/agency. This follows the presumption of agent autonomy stressed by Franklin and Graesser. For purpose of discussion, we have annotated this three-dimensional space with one, relatively "pure" exemplar from each dimension. 0-7695-0493-0/00 $10.00 (c) 2000 IEEE 2 Proceedings of the 33rd Hawaii International Conference on System Sciences - 2000 Collaboration Parallel processing ISCA Expert systems Intelligence Remote programming Mobility Figure 1. Agent framework For example, many expert system applications are quite extensive in terms of formalized, expert-level intelligence, but they traditionally are not designed to operate on foreign hosts, nor do they generally collaborate with other expert systems to jointly solve problems. Similarly, remote programming of the sort enabled by Java and Telescript equip programs to execute on foreign machines, but these procedural applications are not generally endowed with the capability for intelligent inference, nor are they usually thought of in terms of collaborative processing. Likewise, parallel processing has an explicit focus on collaborative problem solving between multiple, parallel processors, but this problem solving is usually focused more on numerical processing than intelligent reasoning, and execution on foreign hosts is rarely envisioned. Clearly, exceptions exist for each class (e.g., distributed AI, intelligent Java agents), but these three exemplars should convey the basic concepts associated with each dimension. Notice the annotation for intelligent supply chain agents (labeled "ISCA" in the figure). Although this class of systems is not as extreme as any of the three exemplars from above along any particular dimension, it occupies a position notionally in the middle of this three-dimensional agent space. Conversely, all three of the exemplars from above are situated along only a single axis. This adds to the challenge of agent development work—particularly where intelligent problem solving must be coordinated among a federation of autonomous agents—but it serves to enable a new set of powerful capabilities (e.g., collaborative problem solving) that proves to be quite effective and useful for providing both interorganizational integration and individual flexibility to complex processes such as supply chain management. 3. Agent-enabled supply chain process design This section draws from [13] to provide a specific example for discussion in the context of integrated process and agent design. Two primary processes are involved with a supply chain: customer purchasing and vendor order fulfillment. Although these customer and vendor processes can be viewed as separate, intra-organizational activities within each of the respective buying and selling enterprises, a strong case can be made for viewing such activities together, as an integrated, inter-organizational supply chain process. The present investigation focuses on a specific, enterprise supply chain process. On the buyer side, we examine procurement work done by the supply department at a medium-size government facility in the U.S. On the seller side, we address order-fulfillment work done by a leading-edge U.S. technology development company. User: - ID rqmts - PR form - Mkt survey - Select source X2’ - Use product X5’ X5’’ X2 Supply: - Verify form - Research sources - Issue RFQs - Analyze quotes - Issue order - Receive goods - Make payment X3 X4 Contractor: - Product marketing - Prep quotes X5 - Fulfill order - Send invoice - Deposit funds Process flow Figure 2. Enterprise supply chain process This integrated enterprise supply chain process is delineated in Figure 2, which uses notation from the General Commerce Model [11]. Notice the process includes a supply department intermediary, which performs specialized purchasing activities on behalf of diverse users (e.g., engineering, marketing or manufacturing personnel) in the organization; that is, the "buyer" in this process is comprised of two organizations: the user (e.g., from Engineering, Marketing, Manufacturing) and the supply department (i.e., the intermediary). Experience indicates this internalintermediation arrangement is in no way unique to the government organization studied in this investigation. Exchanges internal to the buyer organization are differentiated from their inter-organizational counterparts by the prime symbol (e.g., X2', X5'). The enterprise process depicted here includes a relatively high-level delineation of activities and commercial exchanges. For instance, they account for a number of "upstream" process activities and exchanges 0-7695-0493-0/00 $10.00 (c) 2000 IEEE 3 Proceedings of the 33rd Hawaii International Conference on System Sciences - 2000 that take place between the user, supply department and contractor (e.g., conduct market survey (X2); complete purchase request (PR) form (X2'), research sources; issue requests for quotation (X3)). Although this high-level diagram provides an essential enterprise view of the supply chain process, which helps guide agent design, it cannot fully represent how such activities are performed and exchanges are made. Agent design requires much lower-level process decomposition to acquire the knowledge necessary for effective supply chain agent performance. Similarly, "downstream" process activities and exchanges (e.g., analyze quotations; select source (X5'); issue order, receive goods and make payment (X5)) are also represented at a relatively high level and require comparable process decomposition and knowledge acquisition for agent development. Drawing from [12], we initially designate seven of these supply chain process activities for performance by intelligent agents. For reference, they include: 1) complete the PR form; 2) verify the PR form; 3) research sources; 4) issue RFQs; 5) prepare quotations; 6) analyze quotations; and 7) issue purchase order. Such factors are noted in the prior research as conducive to an agent-based technological approach, which established two criteria for evaluating the potential of agent technology in an enterprise supply chain: 1) association of process activities with commercial exchange, and 2) requirement to apply process knowledge for effective work performance. In the case of the present enterprise supply chain, all seven of these activities are either associated with supply chain exchanges, or their effective performance requires considerable process-level knowledge by the people (or agents) assigned to them. Performance of such knowledge work represents a primary capability possessed by intelligent agents that remains unmatched by competing technologies employed along the supply chain. 4. Supply chain agent design In this section, we discuss the design of intelligent agents for the enterprise supply chain from above. We first outline key features of an agent development environment developed specifically for such agent work and describe the use of Grafcets for agent design. We then discuss the structure and behavior of an agent federation developed for this enterprise supply chain. The discussion is purposefully presented at a relatively-high level. The interested reader can refer to prior work (esp. [9, 12]), on which the present research builds, for additional technical details. 4.1. Agent development environment Agent Development Environment (ADE) is a research application used to design, develop, debug, simulate and deploy the agents discussed in this paper. ADE supports the development of multi-agent applications capable of running on a single machine or on a distributed network. ADE is built on G2, an object-oriented graphical environment that offers a robust platform for the development of intelligent real time systems. As a highlevel, graphical environment, ADE serves as something of a “shell” tool—as are common (e.g., JESS, Exsys, ART) for rapidly developing expert system applications—for agent development. For instance, as with expert system shells, the multi-agent application developer may not need to have a Ph.D. to construct a robust, effective system. This contrasts with the manner in which most agent applications are developed today. Figure 3. ADE screenshot Figure 3 presents a screenshot of ADE. It shows four windows for (counter-clockwise from top-left) 1) top-level agent design (e.g., to define agents), 2) a drag-and-drop Grafcet palette (e.g., to construct Grafcets), 3) a Grafcet under construction (e.g., to specify agent behaviors through objects and methods), and 4) a programmer interface (e.g., to use a library of APIs). Again, ADE is detailed in the prior work referenced above. The main ADE components are Agent, Activity, Message, Host, Environment and Grafcet. We briefly outline each in turn. 4.1.1. Agent. The agent represents an intermediate level of abstraction, well below that of the enterprise process and agent federation but well above that of its component activities, objects, methods and rules. As noted above, a key concept associated with the agent is autonomy. Once a specific agent class has been designed and one or more individual agents have been instantiated to reflect user preferences, an agent can be developed to operate autonomously and persistently; that is, each activated agent can make its own decisions and persistently strive to 0-7695-0493-0/00 $10.00 (c) 2000 IEEE 4 Proceedings of the 33rd Hawaii International Conference on System Sciences - 2000 perform its assigned duties, without human input or intervention. Another key concept associated with the agent is agency. A fundamental role of the agent is to represent a user or some other principal, for example making decisions and performing activities on behalf of the principal. In the case of the agents discussed in this paper, the three principals—user, supply department and contractor—each have a class of agents designed to represent them in supply chain operations and transactions. ADE uses delegation based event handling similar to the JavaBeans model, in which agents use messages to generate and listen for events. Each agent has a federation-wide unique name. This enables communication among agents distributed across a network to be independent of an agent's location. Agents refer to each other by name in messages, and the name of an agent cannot be changed during its entire “life.” ADE provides specialized agents (i.e., the Host and Environment described below) to support distributed processing (e.g., "White Pages," "Yellow Pages"). And agents can be dynamically created, deleted, cloned and moved across the network, without human input or intervention. ADE provides a root agent class called AdeAgent. AdeAgent can be specialized and augmented to create domain- and application-specific agent types. As noted above, example agents from this paper include those developed to represent the user, supply department and vendor along an enterprise supply chain. 4.1.2. Activity. Each activity defines a specific agent behavior, and therefore represents a lower level of abstraction than the agent. The AdeActivity class facilitates the development of a multi-thread capability without dealing with threads, stacks and priorities. With this, agents can be designed to concurrently perform multiple activities of the same type or of different types, and within an activity, multiple threads may be active at the same time. Messages sent to an agent can either initiate a new activity or continue a dialog with an ongoing activity. And during execution of an activity, the agent can send and receive either synchronous or asynchronous messages. Each activity maintains a queue of received messages. And within each agent, an AgentHandler defines the destination activity for every message received. This handler is called when a message does not identify a specific destination activity—for example, when an agent first initiates communication with another agent. Activities are implemented using objects and methods, generally with considerable rule-based logic for making decisions and performing autonomously. Process-level knowledge is first formalized through activities for each agent class. Individual agent instances can then be specialized to reflect various users' preferences. In ADE, the activity represents the level of abstraction at which agent development converges with software engineering. Once the agents' activities are specified and defined, familiar object-oriented practices are employed in a manner similar to that in which they would on most contemporary software projects. 4.1.3. Message. Messages are used for communication between agents, as well as communication between agents and external devices or processes. ADE provides a basic direct addressing message service with some additional functionality (e.g., guaranteed delivery, message broadcast, subject-based addressing). ADE provides a root level message class of type AdeMessage. Messages are handled by agent activities and can be sent to a specific activity of an agent. No acknowledgment is required for messages, and the exchange of messages between agents may be synchronous or asynchronous. A synchronous message blocks the activity of the sending agent until a reply is received from the recipient. Alternatively, an agent can be specified to perform its activity without blocking through the use of asynchronous messaging. Messages take a finite amount of time to be delivered, so it is possible for them to get delayed or lost and for messages sent in opposite directions by different agents to cross one another (e.g., both be in transit at the same time). ADE supports two major subclasses of AdeMessage: 1) AdeSolication is a message for which the sending agent expects a reply, and 2) AdeAssertion is a message for which the sending agent expects no reply. 4.1.4. Host. ADE provides a specialized agent class, called AdeHost, which supports other agents in an application. And one AdeHost is provided for every software process on which a multi-agent application is running. When an agent is created, it is assigned to a specific host. The host then installs the agent, registers the agent properties and, if requested, connects the agent to databases, on-line control systems, or other networked services. The hosts thus provide some agent services and infrastructure on each machine. An AdeHost is also responsible for delivering messages, as well as dynamically initializing, moving, cloning and destroying agents. The "Locator Service" of a host enables each agent to locate all the other agents in the application. When an agent moves (e.g., from one machine to another), AdeHost forwards all subsequent messages to the new address. Thus, a principal function of this specialized agent class is to keep track of the properties, locations and states of the other agents on a particular host machine. 4.1.5. Environment. ADE supports agent federations by providing another specialized agent class called AdeEnvironment. Agents belonging to a particular environment (e.g., as part of a supply chain federation) 0-7695-0493-0/00 $10.00 (c) 2000 IEEE 5 Proceedings of the 33rd Hawaii International Conference on System Sciences - 2000 may reside on and move between different hosts. AdeEnvironment represents something of a meta-host (i.e., host-of-hosts) agent and provides distributed "Yellow Pages" services. Although agents can move to different hosts across a network, an agent may not move outside its environment (e.g., federation). Agents within an environment can communicate via message with agents outside the federation, however, provided they are suitably equipped for such "third party" communication (e.g., share common ontology, representational formalism, communication protocol). Notwithstanding advances in each of these areas (e.g., through Ontolingua, Knowledge Interchange Format, Knowledge Query Manipulation Language), robust third party agent collaboration remains a challenging problem in agent research. and technologies (e.g., UML/XML) seen by many as offering promise in the e-commerce domain. And it enforces its own agent-development methodology, which critics may argue is rigid and restrictive. Conceivably, agent applications developed using ADE may lack the flexibility and power enabled by other, more general approaches (e.g., direct Java coding). Alternatively, ADE flattens the steep learning curve associated with agent development and provides a structured, graphical approach that facilitates rapid development. A detailed comparison of ADE with alternative developmental approaches and tools, such as those noted above, is beyond the scope of this paper. However, it represents a natural topic for future research along these lines and is noted as such in the final section. 4.1.6. Grafcet. ADE enforces the use of Grafcets to design the structure and behavior of intelligent agents. Grafcets are derived from work on Petri Nets (e.g., see [10, 14]) and have been accepted as an international standard (IEC 848 and IEC 1131-3) for specification of programmable logic controllers [3, 4]. The Grafcet formalism offers the same level of semantic specification as the Petri Net, from which it is derived, along with additional tailoring (e.g., direct access to an agent’s software objects and methods) for agent development. Grafcets are used to outline the key steps and transitions associated with process performance, along with primary internal rules and procedures, external events and alternative system states anticipated to affect reasoning, decisions and behaviors represented for a process. This technique facilitates mapping between the knowledge and activities required for effective enterprise performance, at the process level, and the behaviors of an agent federation, at the technology level. As a method supporting abstraction and successive refinement, it facilitates agent design by allowing the developer to concentrate on high-level process knowledge and activities before diving into details of objects, messages, rules and code. Using ADE, Grafcets can be represented and developed graphically. This provides integration between the activities and required knowledge captured from an enterprise, at the process level, and the technology-level transitions and steps that guide agent behaviors and communications. These latter agent behaviors and communications are in turn implemented through objects, methods, messages and rules; that is, below the agent level of abstraction, familiar object-oriented analysis, design and programming approaches and techniques apply. ADE provides its own environment for simulation and execution of agents, and it contains a crude translation mechanism for implementing agents in Java. Regarding weaknesses and limitations of this tool, ADE does not take advantage of some current approaches 4.2. Agent structure and behavior Our agent-based supply chain implementation involves three Grafcets—one each for the user, supply department and contractor roles depicted in Figure 2. Each of the corresponding agent classes inherits architectural, design and communication properties and capabilities from a common superclass (supply-chain-agent). As noted above, the root of this class hierarchy is AdeAgent, developed to provide a basic and extensible set of agent capabilities. Each of our three supply chain agent classes is specialized through process-level knowledge and designed to be explicitly tailorable to reflect specific rules, priorities and preferences within the context of each individual in the organization; that is, we develop agents that are domainspecific but still highly tailorable. This allows for commonality of design at the agent-federation and class levels along with flexibility in the instantiation and usage of individual agents. Thus, different organizations of users, purchasing departments and vendors can draw from these supply chain agent classes to refine and specialize their own agents according to local departmental and organizational needs and preferences. And unlike most EDI solutions, which are generally inflexible below the level of a specific department or organization, such agents can be developed and specialized to the level of each individual within the department or organization. For instance, six different users within an engineering group can each instantiate supply chain agents—developed as a common subclass to conform to enterprise purchasing rules—individually specialized to each user's unique preferences and practices. One such agent may reflect its principal's concern for budget and focus on low-cost solutions to satisfying requirements. Another engineer may be far more concerned with power, technical sophistication or compatibility of products than their cost. Yet another person in the group may prefer products from a particular vendor, and so forth. 0-7695-0493-0/00 $10.00 (c) 2000 IEEE 6 Proceedings of the 33rd Hawaii International Conference on System Sciences - 2000 Individual users in the organization can also specialize unique agents to accommodate various vendors and other trading partners. For instance, one set of agents (e.g., a subclass) can be specialized to interface specifically with the GSA Advantage Web site, which is used today to support online credit-card purchases by federal employees, whereas another set of agents can be specialized to interface seamlessly with, and accommodate changes to, some other online sources (e.g., automobile parts suppliers, computer chip manufacturers, other service providers). And again, below such classlevel specialization, each individual user can further refine agents to reflect his or her personal preferences (e.g., product selections based on budget, performance, particular vendor), and such agents can be modified to reflect changes in user preferences and practices through time. Such flexibility and individual variation is simply infeasible with current EDI technology. Yet the sociallyconforming agents closely integrate buyer and seller supply chain processes, which is beyond the capabilities of most extant Web-based supply chain applications. The Grafcet presented in Figure 4 builds upon the design of [12]. It depicts the behavior of a particular user (e.g., software engineer, marketing manager, manufacturing planner) in the organization and maps homomorphically to the integrated process flow from Figure 2. Specifically, the Grafcet flow begins with the user identifying his or her product need and determining the preliminary procurement requirements. The Grafcet shows a transition following this first step. Each such transition includes rules to define the conditions required for an agent to proceed to the next step or set of activities. The other supply chain process activities are represented in similar fashion, and two other Grafcets (not shown) are used to design and develop corresponding activities for the supply intermediary and vendor agents. The reader can refer to [13] for additional detail pertaining to these Grafcets and agents. Figure 4. Grafcet for user behavior To summarize, the process design calls for seven supply chain activities to be performed by three classes of agents—user, supply and contractor—working collaboratively in a proof-of-concept federation. Agents are developed through Grafcets, which graphically depict, and are used to outline and guide, the behaviors of agents at each process step. One such Grafcet is developed for each agent class, which inherits architectural, design and communication properties from a common superclass. Each of the three supply chain agent classes is then specialized through process-level knowledge and designed to be tailorable to the level of an individual in the organization. This serves to demonstrate the manner in which we integrate process and agent design for a specific enterprise supply chain. Given the considerable similarity between supply chains of diverse enterprises, we have no reason to believe the techniques and tools discussed here cannot be employed in enterprises beyond the specific case examined in this paper. 5. Design results and implications We begin this penultimate section by summarizing the results of the integrated process and agent design approach outlined above and discussing some key implications in terms of agent-based e-commerce. We then summarize preliminary implementation results to 0-7695-0493-0/00 $10.00 (c) 2000 IEEE 7 Proceedings of the 33rd Hawaii International Conference on System Sciences - 2000 convey a sense of how the agent federation designed above is operating in the enterprise supply chain. We first note the preliminary nature of implementation results, for the work to date has taken us only through proof-of-concept development of the supply chain agents from above. To date, the three Grafcets noted above have been designed and defined to capture and specify behaviors required for integration of the enterprise supply chain process. And each agent class—user, supply and contractor—has been implemented to collaborate and autonomously perform the seven designated process activities identified above and activated on the local networks of both the government customer and commercial vendor integrated through this enterprise supply chain. These agents have also demonstrated they can move, in process, to alternate machines within each local network and are mobile between remote hosts across the Internet. Regarding the agents' social conformance and efficacy of process performance, we note this agent federation is able to successfully accept procurement requirements and market-survey information from a human user, complete appropriate decision, planning, communication, processing and exchange steps correctly, and effectively integrate this enterprise supply chain process through seamless performance of all assigned buyer, intermediary and seller activities. The agents also communicate effectively in duplex with others along the supply chain, and the agent federation has been allowed to execute for several days without problems of system instability, agent indecisiveness or other maladies that can affect such distributed computing applications (e.g., see [18]). Technically, this provides evidence that agent-based supply chain integration is quite feasible. Also, our distributed architecture, integrated process and agent design and reliance on common network protocols (e.g., TCP/IP) suggest the approach offers good potential to scale well. Further, this agent-based supply chain approach appears to be broadly applicable to businesses, universities, non-profit institutions and other government agencies beyond the specific focus of the implementation described in this paper. And operationally, this work provides evidence that agents can be designed through tight cohesion with a process-level design and implemented to behave in a socially-conforming manner. Particularly when compared with extant supply chain technologies (e.g., Web, EDI, paper-based processes), integrated supply chain process and agent design as described above appears to offer excellent potential for performance improvement. 6. Conclusions and future research Supply chain management represents a critical competency in today’s fast-paced, global business environment. Despite over two decades of effective supply chain integration and partial automation through EDI, however, supply chain managers in the hypercompetitive business environment of today can no longer count on the kinds of stability or predictability required for EDI. Partly in response, many firms are moving to Web-based support for commercial transactions, but much of the capability for supply chain integration is being lost during the transition from EDI to Web-based technologies. In contrast, a relatively novel stream of research argues intelligent agents offer potential and capability for buyer-seller integration and flexibility. And early applications show great promise for supply chain integration through agent technology. However, agent technology remains relatively immature, and we have yet to establish, test and verify good design principles and techniques like those now well established for more mature technological areas. This technological immaturity is particularly perplexing with intelligent agents, because they must be socially conforming. The research described in this paper builds upon recent work on agent-based supply chain integration to propose and discuss a set of techniques and tools to integrate process and agent design for the supply chain in an e-commerce context. Through the discussion above, we first provided some background information pertaining to intelligent agents and then described an integrated approach to supply chain process and agent design. We then analyzed the supply chain of an operational enterprise to demonstrate the use and utility of what is emerging to become a methodology for design and development of multi-agent systems—one that may not require a Ph.D. to develop effective agent applications. Some preliminary results from design using these techniques and tools include tight technical integration of enterprise-level requirements and agent-specific behaviors implemented through a shell-like tool. Preliminary results from implementation include successful development of the three supply chain agents discussed above and effective performance in a socially-conforming manner along the supply chain. This is in addition to agents demonstrating correct process behaviors and relatively long-lived operation without experiencing technical problems or common maladies that can affect such distributed computing applications. Implications of this work with respect to the ecommerce context are many. For one, the agent-enabled supply chain offers tight integration of buyer and seller processes without the rigid inflexibility of EDI, and it provides considerable process flexibility without suffering the kinds of integration losses noted for Web-based supply chain technologies. This combination of process 0-7695-0493-0/00 $10.00 (c) 2000 IEEE 8 Proceedings of the 33rd Hawaii International Conference on System Sciences - 2000 integration and system flexibility reflects some of the best attributes associated with both EDI and Web-based applications. However, empirical research is required to determine the extent to which multi-agent systems may outperform other emerging applications such as Webbased EDI. This represents a natural follow-on research topic to the present investigation. Another e-commerce implication is economic in nature. The proof-of-concept agent federation examined in this study was developed using an emerging methodology that integrates supply chain process and agent design, which we note offers a number of technical and other advantages over many current approaches. We also note the graphical, Grafcet interface provided by ADE may support agent development at a relatively low level of expertise—operationalized as agent development by business managers and professionals, as opposed to computer science Ph.D.s. If we are beginning to uncover, define and refine a technically-sound methodology that can be used to deliver superior supply chain functionality at relatively low cost and cycle time, this may have profound impact on the manner in which e-commerce applications are designed and developed in the near future. Alternatively, we also note the agents developed using ADE do not take advantage of some current approaches and technologies (e.g., UML/XML) seen by many as offering promise in the e-commerce domain. When agent applications developed through these alternative approaches become manifest and can match the process integration and flexibility of the agents described above, empirical analysis and testing of such competing developmental approaches and technologies will make for useful research to build upon this investigation. In summary, considerable research is required to further exposit, test and refine the work described in this paper, and the present results are notably preliminary in nature. But we hope to have made a contribution to the agents and e-commerce research communities, and we look forward to continued research along the lines of this investigation. 7. 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