Supply Chain Model for Management of Materials for Construction Projects

Abstract

Abstract The construction industry is the primary economic sector, playing an essential role in the country's economic growth. Construction is famous for exceeding the specified cost and duration of the project compared to other industries due to its high fragmentation. Material costs represent most of the direct costs of a construction project. As an innovative management model, supply chain management provides a new solution for resolving material handling in construction projects. However, the construction supply chain faces many challenges due to changing orders. This study developed a model to track changes in project stages to establish a flexible supply chain. The developed model (KOTB) is divided into three stages (the planning stage, the suppliers stage, and the inventory stage).These stages have input and output data representing the main factors of the construction supply chain. KOTB represents the project cycle of the construction supply chain, in which the user can have a master plan for any project element. The output data are: planning for project and material, supplier selection, inventory levels during the project, and material order (time and quantities). KOTB has been validated through the insertion of three different construction projects (constructing a governmental building, a residential building, and a playground). The result was compared using a manual calculation.