Abstract

The construction industry has traditionally adhered to a linear economic model, commonly known
as "take, make, dispose." In light of the escalating environmental challenges, the construction
industry is undergoing a transformative shift towards a Circular Economy (CE) approach,
emphasizing the reconsideration of material and component usage in construction with a primary
focus on maximizing their lifespan and potential for reuse as components resulting from
disassembling or deconstructing the building. At the component reuse level, deconstruction
becomes pivotal.
Prefabricated construction represents a significant advancement in the realm of deconstruction,
elevating disassembly practices to a more prominent position. The meticulous disassembly of
components during this process facilitates their potential for reuse. However, despite these
promising developments, a critical challenge facing adaption of CE is the underdeveloped market
for supply and demand for these components.
One strategic approach to influence the market efficiently is the development of a Reverse Supply
Chain (RSC) model, an area that remains largely neglected in current research.
This study aims to optimize the RSC for deconstructed steel building components. The main
objectives are: (1) optimizing the RSC by finding the optimal locations of the reuse hubs based on
minimizing the transportation costs and CO2 emission, and (2) optimizing the operational
efficiency of reuse hubs by developing a strategic roadmap that delineates optimal management
practices to ensure timely market.
The optimal location of hubs within the RSC aims to efficiently connect critical nodes (i.e.
deconstruction sites, hubs, recycle centers, factories, and end-users) by integrating a Genetic
Algorithm (GA) and a Geographic Information System (GIS). The study also examines supply�demand ratios and facility capacities to create a more practical model for future real-world
applications. Simulation results based on estimated geographic building locations and the potential
hub locations demonstrate the effectiveness of the proposed method in identifying optimal hub
placements while minimizing CO2 emission in transportation. Then, to achieve greater efficiency
in this model, it is essential to evaluate the functionality of hubs after their placement in optimal
locations within the model. Key functions include conducting quality inspections based on
component stages, facilitating refurbishment processes, and managing the marketing and storage
of components to extend their lifecycle.
This research provides valuable insights for firms seeking to implement sustainable, profit-driven
strategies and contribute to the advancement of CE practices in the construction industry.