Optimizing decisions in advanced manufacturing of prefabricated products: Theorizing supply chain configurations in off-site construction

- Supply configurations in multi-supplier prefabrication can be optimized using zero-one programming.
- Cost of supply decisions is significantly impacted by imposing purchasing strategic preferences.
- Minimizing disruption risks by adopting multi-supplier configurations increases the total supply cost.

Robust supply decision making is critical to the advanced manufacturing of prefabricated products. Previous related research focused on minimizing cost overruns in off-site construction supply networks by optimizing purchasing decisions. However, decision parameters such as strategic preferences to include or exclude certain suppliers and utilization of multi-supplier configurations are yet to be formulated and analytically solved. The proposed optimization models aim to enhance supply network performance with a smaller overall investment. Toward this aim, three research hypotheses on optimization of supply decisions and configurations are developed and tested. A real-world precast panel production project serves as the test bed to demonstrate the effectiveness of the mathematical programming and analyze cost implications of supply related decisions. The modeling method and results contribute to optimal decision making in advanced manufacturing of prefabricated products.