Modelling an inventory management in construction operations involving onsite fabrication of raw materials

Do Young Jung, Seung Heon Han, Keon Soon Im, Chung Kyu Ryu

Research output: Contribution to conferencePaper

5 Citations (Scopus)

Abstract

There are usually plenty of material inventories in a construction site. More inventories can meet unexpected demands, and also they may have an economical advantage by avoiding a probable escalation of raw material costs. On the other hand, these inventories also cause negative aspects to increase costs for storing redundant inventory as well as decreasing construction productivity. Therefore, a proper method of deciding an optimal level of material inventories while considering dynamic variations of resources under uncertainty is very crucial for the economical efficiency of construction projects. This research presents a stochastic modelling method for construction operations, particularly targeting a work process involving on-site fabrication of raw materials like iron-rebar process (delivery, cut and assembly, and placement). To develop the model, we apply the concept of factory physics to depict the overall components of a system. Then, an optimal inventory management model is devised to support purchase decisions where users can make timely actions on how much to order and when to buy raw materials. Also, optimal time lag, which minimizes the storage time for pre-assembled materials, is obtained. To verify this method, a real case is applied to elicit an optimal amount of inventory and time lag. It is found that average values as well as variability of inventory level decreased significantly so as to minimize economic costs related to inventory management under uncertain project condition.

Original languageEnglish
Pages367-379
Number of pages13
Publication statusPublished - 2007 Dec 1
Event15th Annual Conference of the International Group for Lean Construction IGLC 15 - East Lansing, MI, United States
Duration: 2007 Jul 182007 Jul 20

Other

Other15th Annual Conference of the International Group for Lean Construction IGLC 15
CountryUnited States
CityEast Lansing, MI
Period07/7/1807/7/20

Fingerprint

Raw materials
Fabrication
Costs
Industrial plants
Physics
Productivity
Iron
Economics

All Science Journal Classification (ASJC) codes

  • Civil and Structural Engineering
  • Building and Construction

Cite this

Jung, D. Y., Han, S. H., Im, K. S., & Ryu, C. K. (2007). Modelling an inventory management in construction operations involving onsite fabrication of raw materials. 367-379. Paper presented at 15th Annual Conference of the International Group for Lean Construction IGLC 15, East Lansing, MI, United States.
Jung, Do Young ; Han, Seung Heon ; Im, Keon Soon ; Ryu, Chung Kyu. / Modelling an inventory management in construction operations involving onsite fabrication of raw materials. Paper presented at 15th Annual Conference of the International Group for Lean Construction IGLC 15, East Lansing, MI, United States.13 p.
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Jung, DY, Han, SH, Im, KS & Ryu, CK 2007, 'Modelling an inventory management in construction operations involving onsite fabrication of raw materials' Paper presented at 15th Annual Conference of the International Group for Lean Construction IGLC 15, East Lansing, MI, United States, 07/7/18 - 07/7/20, pp. 367-379.

Modelling an inventory management in construction operations involving onsite fabrication of raw materials. / Jung, Do Young; Han, Seung Heon; Im, Keon Soon; Ryu, Chung Kyu.

2007. 367-379 Paper presented at 15th Annual Conference of the International Group for Lean Construction IGLC 15, East Lansing, MI, United States.

Research output: Contribution to conferencePaper

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Jung DY, Han SH, Im KS, Ryu CK. Modelling an inventory management in construction operations involving onsite fabrication of raw materials. 2007. Paper presented at 15th Annual Conference of the International Group for Lean Construction IGLC 15, East Lansing, MI, United States.