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Coordinating Construction Machinery Leasing Supply Chains Under Integrated Installation–Dismantling Services: A Game-Theoretic Approach with Profit–Cost Sharing Contracts

Year: 2025

Type: article

Abstract: Construction machinery operations are intrinsically linked to critical societal challenges, including safety risks and carbon emissions. In response to the high incidence of fatal accidents during installation and dismantling phases, the Chinese government has officially promoted integrated installation–dismantling services to enhance construction safety since 2023. However, the economic viability of this policy for leasing companies remains largely underexplored. To address this gap, this paper develops a leasing-oriented closed-loop construction machinery supply chain model that incorporates integrated installation–dismantling services under an industrial internet platform. The study first compares and analyzes the product leasing demand, installation and dismantling demand, and supply chain profits under both centralized and decentralized decision-making scenarios. Based on these analyses, a profit–cost sharing joint contract is designed to coordinate the supply chain. Furthermore, the interrelationships among key parameters are examined through a sensitivity analysis and numerical simulation. The results reveal that enhancing leasing information services increases both the demand for construction machinery and the platform’s operating costs. These costs are positively correlated with the product’s selling price, leading to higher purchasing costs for lessees. Similarly, improving information services for installation and dismantling raises the platform’s operating costs and enhances service levels, which in turn increases installation and dismantling costs for lessees. The findings demonstrate that within a certain range of cost-sharing and leasing-sharing proportional coefficients, the joint contract enables the supply chain to achieve Pareto optimization. This approach simultaneously alleviates economic pressure on lessees, improves construction safety, and promotes the integration of installation and dismantling services.

Source: Buildings

DOI: 10.3390/buildings15081217

Authors: Jing Yin, Hao Chen, Jiawei Zhang, Tingting Wang, Shunyao Cai

Institutions: Beijing University of Civil Engineering and Architecture, Beijing Institute of Graphic Communication, Chongqing University

Language: English

Topic: Supply Chain and Inventory Management

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Sustainable cities and communities, Decent work and economic growth

Open Access status: gold

Estimated APC paid: $3,137