Dynamic evolution of buyer-supplier relationships based on game theory

Supplier relationship management is one of the core links in supplier chain management. A dynamic evolution model of buyer-supplier relationships is constructed based on dynamic game with incomplete information to improve supplier relationship management. Four buyer-supplier relationships are founded by interdependence between buyer and suppliers, which are called advantage relationship, disadvantage relationship, complementation relationship and equal relationship. And dynamic evolution of buyer-supplier relationships is analyzed according to dynamic evolution model of buyer-supplier relationships. The model of dynamic evolution of supplier relationships is obtained. Finally strategies of supplier relationship management are put forward according to dynamic evolution of supplier relationship and practical experiences. It is expected that the research can help the practice or theory of supplier management.