Supplier selection mechanism for modular and prefabricated construction through cap-and-trade and early involvement

Abstract

In recent years, prefabricated construction is also facing challenges while gradually expanding the scope and proportion of use. These challenges include, for example, compared with the traditional construction model, how to make the horizontally fragmented supply chain more integrated. However, the energy saving and emission reduction of prefabricated construction has always been one of the hot topics of research in this field, but due to the mismatch between investment and return, research on energy saving and emission reduction has been relatively backward. In recent years, the concept of cap-and-trade has been continuously improved due to the continuous improvement of laws and market mechanisms. Participants of prefabricated construction have been motivated and profitable to promote energy conservation and emission reduction, and thus related research has new opportunities.

In order to seize these opportunities, this thesis proposes a supplier selection mechanism with early supplier involvement and cap-and-trade theory. From the perspective of the supply chain, in the early stage of design process of the prefabricated construction project, different competent suppliers are invited to participate in the design. Through cooperation, while improving the design of the building, it is also capable to evaluate the energy saving and emission reduction capabilities of different suppliers. This not only ensures that the supply chain can deliver high-quality projects, but also improves the energy saving and emission reduction capabilities of the supply chain and obtains additional benefits.

The importance of this research lies in that, first, the high efficiency characteristic of prefabricated construction can be further improved through early supplier involvement, and the design freeze can be completed quickly by using the expertise of supplier. Second, using the concept of cap-and-trade to evaluate suppliers can clarify the energy saving and emission reduction capabilities of the entire supply chain and the profitability of the cap-and-trade mechanism, which improves the value of the supply chain. Finally, this research is beneficial to the entire industry’s ability to proactively improve energy conservation and emission reduction, in order to cope with the relevant expectations of prefabricated construction in today’s society.