Coordination and optimization decision of assembly building supply chain under supply disruption risk

Abstract: Assembly buildings, in the context of the low-carbon transformation of the construction industry, achieve superior outcomes in terms of carbon emission reduction, enhancement of building uniformity, and optimization of resource utilization as compared to traditional buildings. However, the supply chain for assembly building is marked by a significant susceptibility to risk and a need for timely fulfillment of requirements. This paper examines the risk of disruption and capacity limitations in the assembly building supply chain resulting from supply disruptions. It establishes a three-tier supply chain for assembly buildings, including primary component suppliers, backup suppliers, assembly manufacturers, and retailers. The study compares the optimal decision-making and coordination strategies of the supply chain members under centralized, decentralized, and joint agreements. The supply chain dual-source procurement decision coordination model is constructed by incorporating capacity constraints and analyzing the effects of supply disruption probability, repurchase coefficient, revenue sharing coefficient, cost, and other parameters on the expected profits of the supply chain members using arithmetic simulation. Research has indicated that when the likelihood of a disturbance occurring rises, the anticipated financial gain for the main provider decreases, while the predicted financial gain for the secondary supplier increases. The implementation of a collaborative agreement between the assembly maker and the parts backup provider would result in much greater anticipated profits compared to the decentralized decision-making approach. The impact of the revenue sharing coefficient on the predicted earnings of retailers and assembly manufacturers is more significant compared to the repurchase coefficient. The selection bias between NA and NB techniques under capacity constraints mostly arises from the assertiveness of the wholesale asking prices of inexpensive component suppliers, leading assembly manufacturers to increasingly prefer the NA option. This paper's research successfully achieves the contractual coordination of the assembly building supply chain, enhances the resilience of the assembly building supply chain, and promotes the long-term sustainable development of the assembly building supply chain.

How to cite this paper

 Liu, L., Huang, N., Qian, Q., Zhao, Y., Yang, T & Han, C. (2024). Coordination and optimization decision of assembly building supply chain under supply disruption risk.International Journal of Industrial Engineering Computations , 15(4), 909-930.

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