High cost is one of major obstacles to widely promote the application of prefabricated construction (PC) in construction process in China. According to research on cost of PC, the production scale of component factory and the transport distance have a significant impact on the PC cost. Applying the theory of supply chain management (SCM), this paper aims to lower the total cost of PC supply chain especially in production and delivery links, which are mainly involved in three stakeholders including supplier, deliverer, and contractor. So, two strategies which are distinguishing in factory scale and transport distance are taken into consideration: one is to establish large factory suppling for several sites, which could be called PC component industrial base; another is to build a small mobile factory, suppling components for its adjacent site, which may spend no transport cost. What's more, two supply chain models are built according to these two strategies, which comprise 1 supplier-2 contractors and deliverers, to calculate the total cost of fixed cost, variable cost, and delivery cost during PC construction process. At last, a case is studied to make optimal decision between the two strategies for PC component factory's development.
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