Advanced planning with supplier selection for modular construction supply chain performance improvement

What is it about?

The construction industry is increasingly considering digitization, automation, and Information and Communications Technology (ICT) and is shifting from traditional construction methods to modular construction (MC). If the construction supply chain supports this transformation, it must be modified and strengthened using an adaptive logistics system to achieve better performance. However, numerous papers in the literature cited that suppliers’ lousy performance and the other project shareholders’ lack of collaboration result in project delays or cost overruns. This research aims to solve that problem by proposing an optimization model that can be utilized in a project's planning phase by selecting suppliers and the number of activities required to deliver a final modular construction project. For this reason, a generalized mixed integer linear programming (MILP) model is developed and applied in a case study example in this paper. The results show that the supply chain performance of a project can be improved if supplier selection and activities selection decision is optimized during the planning phase. This model will allow designers or higher management of a project to collaborate and evaluate different scenarios of modularity and suppliers and select the most cost- or time-optimized solution for any MC project.

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