Towards operational hedging for logistics uncertainty management in prefabrication construction

Y. Zhai, Ray Y. Zhong, George Q. Huang

Research output: Journal article publicationConference articleAcademic researchpeer-review

24 Citations (Scopus)


Current years, prefabrication construction has been widely used in the building industry, from which large number of uncertainties exist and may greatly influence the quality and efficiency. This paper proposes a vision of operational hedging to address these uncertainties. Main focus is placed upon prefab factory, prefab logistics, and on-site assembly which are three key phases in a prefabrication project. Several hedging strategies such as lead-time hedging, space hedging, and L+S hedging are introduced. A demonstrative case from Hong Kong Housing Authority is presented for explaining how these strategies are used for different decision makers to cooperate so as to improve the quality and efficiency of operational executions. This paper opens an area in where hedging methodologies, models, solution algorithms, as well as practical cases could be further studied in other area.

Original languageEnglish
Pages (from-to)1128-1133
Number of pages6
Issue number3
Publication statusPublished - 1 May 2015
Externally publishedYes
Event15th IFAC Symposium on Information Control Problems in Manufacturing, INCOM 2015 - Ottawa, Canada
Duration: 11 May 201513 May 2015


  • Logistics uncertainty
  • Operational hedging strategy
  • Prefabrication construction
  • Supply chain

ASJC Scopus subject areas

  • Control and Systems Engineering


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