Noncooperative game-based equilibrium strategy to address the conflict between a construction company and selected suppliers

The supply of construction materials is one of the most important in construction engineering, playing an increasingly important role on the efficient operation of the construction supply chain (CSC). This paper examines supplier selection and dynamic inventory (SSDI) problems for the supply of construction materials. Unlike most previous studies, this paper is among the first to deal with an SSDI problem based on the conflicts resolution between the CSC decision makers. A dynamic bilevel mathematical optimization model is put forward to handle the interactions between a construction company and selected suppliers (CSC decision makers) based on a Stackelberg game and Nash equilibrium under an uncertain decision-making environment. In the SSDI problem, the construction company as the leader decides on the optimal work operations, which involve supplier selection, the development of a procurement plan, and the establishment of a construction materials dynamic inventory. To pursue their individual benefits, the selected suppliers (as the followers) seek to optimize their transactions with the construction company. With full consideration of the noncooperative game relationship between the selected suppliers, an optimization mechanism is determined using the proposed model. An interactive bilevel particle swarm optimization (BLPSO) algorithm is then employed to handle the complex model. Eventually, a case study is used to reveal the effectiveness and adaptability of the proposed methodology. The results and further analyses of the methodology demonstrate that both the construction company and the selected suppliers could obtain satisfactory benefits and attain equilibrium. By considering all decision makers' interactions, the methodology prevents critical conflicts and promotes CSC operations, thereby making a significant contribution to construction materials supply management. This methodology could be used for many other similar construction management problems by making minor modifications.