Simulation-based decision support system for economical supply chain management of rebar

Polat, G; Arditi, D and Mungen, U (2007) Simulation-based decision support system for economical supply chain management of rebar. Journal of Construction Engineering and Management, 133(1), pp. 29-39. ISSN 0733-9364

Abstract

The economics of a materials management system is defined by the size of the shipments, the scheduling strategy that allows contractors to handle uncertainty and variability in the supply chain, and the timing of the shipments, which in turn depend on the environment in which the project is taking place. This study presents a simulation-based decision support system to assist contractors in selecting the most economical rebar management system prior to the start of construction by recommending lot sizes (large, small), a scheduling strategy (optimistic, neutral, pessimistic), and buffer sizes (large, medium, small) given the conditions of the project. This model is of benefit to contractors and researchers because it generates the probable cost of inventory of 18 alternative rebar management systems ranging from just in case (JIC) to just in time (JIT) and including different variations in between. It allows contractors to select the alternative with least cost of inventory at the planning stages of a project. The simulation model was tested by using actual data obtained from a trade center project in Istanbul, Turkey. As expected, the test indicated that JIC was the most economical rebar management system in a case study conducted in a developing country, as it generated a savings of 4.8% over JIT.

Item Type: Article
Uncontrolled Keywords: construction materials; decision support systems; simulation models; Turkey
Index terms: strategy, developing country, management system, decision support, scheduling, Istanbul, materials management, variation, just-in-time, savings, inventory, Turkey, case study, variability, construction material, buffer, rebar
Subjects: data collection methods, operations research, building materials, operations management, economic analysis, management, inventory management, contractual condition, Geography, financial risk, development economics, decision analysis, lean logistics, statistical analysis
Topics: Cost Management, Business Strategy, Research Practice, Geographical Context, Engineering Principles, Construction Materials, Risk Management, International Construction, Supply Chain Management, Contract Administration, Time Control, Organizational Design, Site Management
Descriptive scope: 3 PCE

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here