Sustainable construction supply chain management with the spotlight of inventory optimization under uncertainty
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Sustainable construction supply chain management with the spotlight of inventory optimization under uncertainty Zahra Mohammadnazari1 · Seyed Farid Ghannadpour1 Received: 6 April 2020 / Accepted: 12 November 2020 © Springer Nature B.V. 2020
Abstract In this research, a supply chain network has been designed for inventory management using not only the project site storage facility but also an ancillary warehouse to keep materials. In order to make decision about the appropriate place for building the warehouse, multicriteria decision-making techniques have been applied. Since the transportation sector, as the most important energy-consuming part, plays a significant role in global warming after power stations and the delivery of materials will have environmental impacts, this research tried to minimize the external cost of global warming caused by transportation. In this study, a mathematical formulation is presented to solve the problem of ordering the required amount to project site, while taking into account an ancillary warehouse. To quell the discussion, a numerical example has been demonstrated. The findings show that uncertainty considerations fortify the strict decision making and can increase the confidence level. Keywords Construction project · Material inventory management · Uncertainty · Sustainable development · Multi-criteria decision making
1 Introduction There have been some significant features that distinguish construction industry from the production environment. Because of being hypercompetitive and project-based, any problems in planning (for example, not having the right planning and not having the commitment) and implementation phases in construction industry can lead to severe losses in different aspects of project (Rui et al. 2017). Hence, eliciting guidelines for efficient management is considered a momentous task, of which some of them drew upon experiences of the manufacturing industry or build upon the assumption of independent and rational * Seyed Farid Ghannadpour [email protected] Zahra Mohammadnazari [email protected] 1
Department of Industrial Engineering, Iran University of Science and Technology, 16846‑13114 Tehran, Iran
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evolution of construction industry (Winch 2003). All of these considerations have been made in order to setting up the right profit margin, which is the most important goal of each supply chain; besides, these profits can be obtained through various channels and different sectors in a supply chain (Kim and Huynh 2008). Among construction supply chain materials/components, procurement is enumerated as one of the most challenging tasks (Benton and McHenry 2010). The aim of designing a supply chain for construction sector is related to serving the customers demand. Hence in the strategic position, supply chain management will encounter uncertainties due to the real-life unexpected events. The consumption of materials in large quantities cannot be regarded as a deterministic task. Th
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