Research On Construction Components Supplier's Inventory Optimization Based On Construction Industrialization

Traditional construction method in China has several problems, like low productivity, high resource consumption and environmental pollution. So the industrialization has been widely used as an effective method to solve these problems. Recently, the implementation of projects of construction industrialization has been promoting in China, while many companies just ignore the stock-flow problems since the increased profits and quantity in this process. Inventory management is considered as a simple management of warehouse. However, only when the companies recognize the increasing number of sales cannot get corresponding profits, they begin to notice piles of goods are still stocking in the corner. But it is difficult to solve the long-formed predicament, especially in terms of some building components with a longer production and delivery time or with, larger size, volume, weight and value. Without efficient inventory management, it is difficult to enjoy the advantages of industrialization.Build-To-Order can definitely reduce the inventory levels(sometimes the level can be as low as zero). And why components suppliers are holding large stocks? The reason is: on the one hand, suppliers' producing ability is limited, can only advance stocking of production; on the other hand, the uncertain factors, the longer supply time and the profit loss by the product shortage causes several uncertainties. suppliers hold large stocks because of shortages caused by the loss of customers. So it is impossible to achieve the zero inventories at that time, which calls for the safety stock for each company. So this paper aims to optimize the level of stocks.The construction components are regarded as the research objectives, and they are divided into 3 parts according to the degree of standardization, including custom-shaped parts, standard parts and general parts. The suppliers and the construction enterprises will be chosen to study the issues of the safety stock of the standardized components by the suppliers. The main studies of this article can be divided into four parts:In the first, the splitting design, the pulling production, the installation of components will be explored to determine the characteristics of the building components. It is beneficial to define the boundary conditions of inventory policy and to enhance the accuracy of the model.Secondly, the characteristics of components replenishment through project practice and survey are carried out. The key part of component inventory management relies on the suppliers. Thirdly, the objective functions model will be built and then calculated. For example, to minimized the replenishing cost of standardized components while getting more replenishment amount; to find out the relationship between amount of inventory and replenishment when there is an emergency that out of stock and to calculate the safety stock amount that are needed; according to the general parts, building the random safety inventory model can be an feasible way.Finally, the results of this model will be used in projects to demonstrate the application of this method.