Study On The Inventory Management Of The Construction Industry

Construction industry has played an important role on China’s modernization and national economic growth.As an important department of national economic development,construction industry has far-reaching influence on manufacturing industry,on secondary industry and even on the entire national economy.However with more open the China’s construction market is,the more intense the market competition is.The profit margin of construction industry is shrinking.So it is urgent for the construction companies to reduce production and operating cost through management level improving.In this paper,it has inventory management cost optimization research on the construction material which has large proportion of the total cost of construction project.First of all,the paper has summarized related basic theory of inventory management in construction project area.Then research methods like quantitative analysis,qualitative analysis and operational research has been used during the whole research.ABC inventory classification has been affirmed very important during construction project material management in the paper on one hand.On the other hand,the paper has implemented deep study on the application of JMI theory on construction supply chain.It has contrastive analysis of inventory costs between tradition inventory method and JMI method under the stable material demand condition.Then the dynamic analysis model has been used for inventory costs research of JMI method under the unstable material demand condition.After theory and method research,an empirical study on the case of project is used to discuss the feasibility of the study.The conclusion verified that the JMI could be used to optimize the inventory management cost of construction project.However,the conclusion also finds out that JMI cannot meet the requirement that local optimum and overall optimum of construction supply chain reached at the same time under any circumstance.This conclusion also provide some new study directions for further development of construction project inventory management research.