Material Procurement And Employation In Construction Projects

1153 Words5 Pages
This project involves optimization of materials procurement, transportation in construction projects. With the thought of operations research, designed a objective function and constrained conditions for a materials procurement and transportation optimization model. According to data, simulates the cost and the method provided can be used to analyze the rule of materials procurement and transportation cost and make a correct decision and to solve the problem of analyzing and forecasting procurement and transportation costs of the main materials in construction projects.

INTRODUCTION:
A Large proportion of the construction cost is materials, so it may obtain great economic benefit if the material cost could be reduced by optimizing. Therefore it is necessary to control the main material cost of construction projects strictly. The main materials means that the material is less in variety while large quantity funds needed, such as steel bar, cement, fine aggregate and coarse aggregate and higher-value equipment etc, which generally account for total funds at 60% to 80%. Especially the steel material in construction has a so high price and great demand that optimization is worth and in need.
Material procurement and transportation cost optimization problem involves material prices, transportation prices. Generally speaking, for a specific construction project, total demand of one material is certain, and the construction sites and materials providers relative location is certain too. Therefore, if transportation price is fixed, what should be considered is materials procurement volume. Based on these, what should do next is to take procurement volume, availability of materials from providers and their prices as variables, make obj...

... middle of paper ...

...uct residential building in five different sites located in Chicago city. The company needs the construction to go into operation within six months. However, it needs to procure the materials required for the sites from different providers to minimize the costs. The company selected four providers to supply the materials either by cash or credit purchasing. Therefore company needs a model to optimize the material procurement and transportation costs in construction projects.
ASSUMPTIONS:
• Assuming the procurement and transportation cost optimization plan of one main material in a certain project as object. and the material can be single species and a variety of specifications.
• The total demand of the main material for a project is determined, never changes as market price fluctuating.
• The transportation price varies from different providers to different sites.

    More about Material Procurement And Employation In Construction Projects

      Open Document