A Blockchain-Based Optimization Model for Smart 4PL Network Design in Off-Site Construction

Authors

  • Behnam Karimi Department of Industrial Engineering, Iran University of Science & Technology, Tehran, Iran.
  • Mohammad Mohammadpour Omran Department of Industrial Engineering, Iran University of Science & Technology, Tehran, Iran.

https://doi.org/10.48313/scodm.v3i1.54

Abstract

This study proposes a Blockchain (BC)-integrated Fourth-Party Logistics (4PL) model to improve efficiency and Transparency (TR) in Off-Site Construction (OSC) supply chains. A bi-objective optimization model is developed to minimize total network costs and maximize transparency, determining optimal locations for pre-processing centers, selection of Third-Party Logistics (3PL) providers, assignment of installation teams, and material flow planning. Validation through  General Algebraic Modeling System (GAMS) software and sensitivity analysis shows the model significantly reduces logistics costs and delays. Notably, partial BC integration achieves 65% transparency with only a 3.75% cost increase, offering a cost-effective solution. The framework enables construction stakeholders to leverage Industry 4.0 technologies for enhanced collaboration and risk mitigation.

Keywords:

Fourth party logistics, Blockchain, Network design, Off-site construction, Multi-objective optimization, Supply chain management

References

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Published

2026-03-06

Issue

Vol. 3 No. 1 (2026): Supply Chain and Operations Decision Making

Section

Articles

How to Cite

Karimi, B. ., & Mohammadpour Omran, M. . (2026). A Blockchain-Based Optimization Model for Smart 4PL Network Design in Off-Site Construction. Supply Chain and Operations Decision Making, 3(1), 76-86. https://doi.org/10.48313/scodm.v3i1.54

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