An Application of an (R, S) Inventory Management Model for a Construction Materials Manufacturing Company by Using Simulation

Abstract

Globalization has motivated companies to develop competitive strategies in today's business environment. In this context, they lead them to review their costs. When the cost items are analyzed, the most critical point that will give an advantage to companies in terms of cost is that companies healthily manage their inventory. Inventory management is of vital importance as the companies have a significant percentage in terms of cost and ensure that the customer demands are met in a timely and sufficient manner. This study focuses on the problems of the company's inventory control decisions that ensure balanced and minimum costs through effective inventory management. In this study, one-year data on demand, consumption, and inventory of a company that uses traditional methods including semi-finished products are considered. Since the demand is not known precisely and it is probabilistic, we apply the (R, S) inventory control model. We use simulation as a stochastic methodology to determine the inventory level of the construction company under consideration. As a result of the study, after comparing the actual data in the current system with the developed model we apply, it is observed that the cost reduction and its use provided additional benefits to the company.

Evaluation and Development of Building Material Sales Information System to Improve Inventory Management and Customer Service

“…Efficient inventory management is crucial for building materials suppliers to meet dynamic construction project demands while minimizing costs [2], [3]. Traditional methods often fall short in handling fluctuating demand and supply uncertainties.…”

“…Complexity of Construction Projects: The dynamic and unpredictable nature of construction projects posed significant challenges for inventory management. A simulated interviewee remarked, "Construction projects often have changing The integration of Building Material Sales Information Systems (BMIS) in the construction industry has been highlighted as a transformative tool for addressing inventory management challenges and enhancing customer service [2], [3]. BMIS offer real-time visibility, streamline processes, and improve communication, empowering suppliers to effectively respond to the dynamic demands of construction projects while ensuring superior service experiences for customers.…”

“…Efficient inventory control techniques are crucial in the construction industry to minimize wastage, maximize efficiency, and reduce costs [1]. Traditional methods of inventory management, while widely used, may not always meet the dynamic demands of the construction environment, leading to inefficiencies and missed opportunities [2]. Implementing innovative technologies like radio frequency identification (RFID) and building information modeling (BIM) can enhance inventory control practices and improve overall efficiency in construction projects [3].…”

“…Implementing advanced technologies such as radio frequency identification (RFID) and building information modeling (BIM) can enhance inventory control practices, improve efficiency, and mitigate these issues [2]. Additionally, the efficient planning of materials and procurement management systems play a significant role in ensuring timely project completion within cost constraints, emphasizing the critical impact of inventory management on construction performance [11].…”