Optimizing material-related costs using dynamic site layout and supply chain planning

Abstract

Understanding a construction site layout is a crucial step before allocating resources to it; space is a critical factor that impacts both labor productivity and ease of material reach when needed. There is little research performed on the cost aspect of material management on site in compliance with the schedule and the type of supply chain strategy. The process of delivering bulk Glass Reinforced Concrete (GRC) units based on a push-supply system to a congested site with limited storage space all the way to their storage and installation on site is studied in this paper. The resources' cost, deterioration cost, transportation-delay cost, and the corresponding space turnover rate associated with the process are also addressed. The aim of this paper is to incorporate lean thinking to develop, model, and simulate an optimized and dynamic site layout that allows for a smooth flow of materials to the site thus minimizing their accumulated logistics and handling costs using the simulation software EZStrobe. Results showed 16% reduction in the total cost and 15% in the total simulation time from the base model of the process under study by adopting a pull-based supply chain of GRC units and combining certain activities of the process.