A simulation-based decision-making framework for construction supply chain management (SCM)
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The conventional economic order quantity (EOQ) model used for calculating re-order point in construction material procurement cycle is fundamentally limited by the assumed constant lead time. In real construction scenario, the lead time is hardly ever constant. This study uses a PERT-based simulation model to calculate optimum re-order point and order size with an objective of minimizing the average inventory level and downtime due to non-availability of material. The simulation is run on the STROBOSCOPE simulation framework developed by the researchers at the University of Michigan. The duration data collected from a construction project are used to model each step of the procurement process. The results from the simulation are analyzed to study the relationships between order size, re-order point, average inventory level and work–idle time. A decision-making framework is proposed to choose the optimum order size and re-order point (minimum inventory threshold) for efficient use of storage space and minimum idling.
KeywordsSupply chain management Stroboscope Simulation Modeling Variable lead-time Decision-making
The authors express their deep gratitude toward RICS School of Built Environment Mumbai and Amity University Mumbai for supporting this study by providing adequate infrastructure and working environment. Without it, this study would not have been completed.
Compliance with ethical standards
Conflict of interest
On behalf of all authors, the corresponding author states that there is no conflict of interest.
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