Operational Hedging and Coordination in Prefabrication Construction Industry

摘要

We analyze the operational hedging and coordination problem in a prefabrication construction supply chain consisting of a building company (BC) and a prefab factory (PF). The interaction between two commonly used operational hedging methods is investigated. A mechanism for coordinating two independent entities (i.e. BC and PF) is developed. According to further numerical studies, we found that both parties get gets better-off and the system is less susceptible to a highly uncertain supply chain.