eLearning / NA Systems Analysis Laboratory Helsinki University of Technology Case description: Problem of buyer and seller  These slides contain description of the case of buyer and seller  The material presents  The problem both from the buyer’s and the seller’s point of view  The issues they negotiate about  What if they fail in the negotiation

eLearning / NA Systems Analysis Laboratory Helsinki University of Technology The buyer’s problem  A gentleman (buyer) wants to buy twenty brand new shirts from a tailor  He considers 220€ to be a reasonable price if the shirts are delivered immediately  Further, he thinks that it is possible to delay the time of delivery but then he wants to have discounted price.

eLearning / NA Systems Analysis Laboratory Helsinki University of Technology The seller’s problem  The tailor (seller) is selling shirts for a gentleman  He needs at least 160€ to cover his production costs  He prefers to delivery in seven days  There are other orders waiting to be filled  Faster delivery is possible but for a higher price  He is unable to deliver earlier than in two days

eLearning / NA Systems Analysis Laboratory Helsinki University of Technology What do they negotiate about?  The negotiation is about two issues: price and delivery time  They try to find a price and a delivery time that they both agree!

eLearning / NA Systems Analysis Laboratory Helsinki University of Technology What is their starting point?  Last year, they agreed that the tailor delivered the shirts in two days at 200€  They still agree about it. Thus it is their reference agreement  They can take it as an initial tentative agreement and try to seek an improving one