A fuzzy leader-follower game approach to interaction of project client and multiple contractors in time/cost trade-off problem

Hafezalkotob, A.; Hafezalkotob, A.

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Journal of Project Management

ISSN 2371-8374 (Online) - ISSN 2371-8366 (Print) Quarterly Publication Volume 3 Issue 2 pp. 105-120 , 2018

A fuzzy leader-follower game approach to interaction of project client and multiple contractors in time/cost trade-off problem Pages 105-120 Download PDF

Authors: Ashkan Hafezalkotob, Arian Hafezalkotob

DOI: 10.5267/j.jpm.2018.1.003

Keywords: Bi-level distributed program-ming problem, Project client, Project contractors, Leader-follower interaction, Game theory

Abstract: In recent years, clients often employ multiple contractors to implement different activities of the projects. Each contractor manages and implements a subset of activities according to the deter-mined schedule and payments. In this situation, time/cost trade-off problem becomes a distributed decision making problem in which the client, as leader, and the contractors, as followers, pursue their own objectives. We establish a multi-objective, bi-level distributed programming model based on fuzzy mathematical programming for this time/cost trade-off problem. The model is then developed for three common behaviors of client i.e. profit seeking, minimization of project time, as well as combination of profit seeking and minimization of project time behaviors. As the solution approaches, we propose transformation method based on Karush-Kuhn-Tucker condi-tions projects to transform bi-level programming problem to a single level one. Numerical results reveal that the client’s behaviors have measurable impact on time and cost of activities performed by contractors. Moreover, we found that when the client does not have complete information about the contractors’ financial situations, the client should make trade-off between his confidence level and his profit.

How to cite this paper

 Hafezalkotob, A & Hafezalkotob, A. (2018). A fuzzy leader-follower game approach to interaction of project client and multiple contractors in time/cost trade-off problem.Journal of Project Management, 3(2), 105-120.

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