Operational Hedging and Coordination in Prefabrication Construction Industry

Yue Zhai, George Q. Huang

Research output: Journal article publicationJournal articleAcademic researchpeer-review

9 Citations (Scopus)


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.

Original languageEnglish
Pages (from-to)1178-1183
Number of pages6
JournalProcedia Manufacturing
Publication statusPublished - 2017
Externally publishedYes


  • game theory
  • operational hedging
  • prefabrication construction
  • supply chain coordination
  • supply chain risk management

ASJC Scopus subject areas

  • Industrial and Manufacturing Engineering
  • Artificial Intelligence


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