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
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Finally, from the findings of the study, suggestions of how linear programming method could be widely applied in decision making in construction would be offered.
BRIEF REVIEW OF LITERATURE:
Linear Programming is a powerful quantitative tool used by operations managers and other managers to obtain optimal solutions to problems that involve restrictions, such as the available materials, budgets, and labor. These problems are referred to as constraint optimization problems. There are numerous examples of linear programming applications including:
• Establishing locations for emergency equipment and work force that will minimize response time
• Determining optimal schedules for planes, pilots, and ground personnel
• Identifying the best set of worker-job assignments
• Developing optimal production schedules
• Developing shipping layouts that will minimize shipping costs
• Identifying the optimal blends of products in a
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The two general types of objectives are maximization and minimization. A maximization objective might involve cost, time, distance travelled. The objective function is a mathematical expression that can be used to determine the total profit for a given solution. Decision variables represent choices available to the decision maker in terms of amounts of either inputs or outputs. For example, some problems require choosing a combination of inputs to minimize total costs, while others require selecting a combination of outputs to maximize profits or revenues. Constraints are limitations that restrict the alternatives available to decision makers. There are three types of constraints, mainly less than or equal to (<=), greater than or equal to (>=), and simply equal to (=). A <= constraint implies an upper limit on the amount of some resource available for use. A >= constraint specifies a minimum that must be achieved in the final solution. The = constraint is more restrictive in the sense that it specifies exactly what a decision variable should equal. A linear programming model can consist of more than one constraints. The constraints of a given problem explains the set of all feasible combinations of decision variables; this set is referred to as the Feasible solution. Linear programming algorithms are designed to search the feasible solution space for the combination
Noori, S., Feylizadeh, M. R., Bagherpour, M., Zorriassatine, F., & Parkin, R. M. (2008). Optimization of material requirement planning by fuzzy multi-objective linear programming. Proceedings of the Institution of Mechanical Engineers, 222, 887-900. Retrieved from http://search.proquest.com/docview/195144743?accountid=32521
In order to eliminate or reduce the material waste or non-value adding activities and improve the quality of construction works, a quantitative study approach will be adopted. The application of DMAIC methodology will be adopted to justify the research work. DMAIC acts as a road map to the project managers to identify and understand the various root causes and their effects. Therefore, providing necessary improvements and control measures. Thus the combination of Lean Six Sigma leads to the projects of superior quality at the right
As the United States economy struggles through a sluggish time with the stock market dropping and unemployment rising, being competitive in the job market has become extremely important among professionals. Engineers are no exception. For most engineering firms, being competitive and successful requires obtaining design projects offered by companies in other fields. These projects can range from designing heating and ventilation systems for office buildings to water systems for cities to computer networks for businesses—the list of possibilities and disciplines is extensive. To get these jobs, engineers must make a bid proposal for the project. Bidding involves estimating the entire cost of the project, including the designing and building processes, as well as the materials and labor. Usually, the company with the lowest bid and the best plan gets the job. The ethical issue in this process is determining the cheapest building materials and construction procedures possible without compromising public safety.
The construction industry sits at the epicenter of many legal disputes, likely because the interactions between construction professionals and property owners dip into a variety of law areas: real estate, contract, employment and tort. The industry is subject to construction laws that have grown from state statutes and cases (mainly from federal government contracts). Many of the doctrines from federal cases are adopted into state law, but states also choose to stretch or narrow these doctrines as needed.
...bine it into the price for equipment rentals and labor. The grand total of these figures is the cost of the job, if we price under that number, we lose money. So, careful judgment is used to decide how much profit a job should bring in. We then decide how much over the total cost we want to charge, we type up an official, detailed quote for the job. If the contractor is happy with the price, he will accept our bid and we now have the job. Now all that’s left to do in this stage is to get all the permits and draw up the necessary contracts.
This chapter provides a review on the existing literature regarding uncertainty in cost estimating in construction. There is an examination of the definitions of terms, and a review surrounding the practice and forms of cost estimating. The review will also analyse the factors effecting cost uncertainty and its relative importance to construction projects before focusing on design information as a major proponent of the inherent uncertainty in estimating.
In general, there are different types of procurement type for various situations due to no one method can be suitable under the all different construction project. In this case, there are four procurement paths, which are traditional, design and build, management and design and manage, will be advised to use. However, each method has different aspects of advantages and disadvantages.
To test the financial feasibility and plan acceptability, there must be information on the magnitude, and share of estimated project cost that are reimbursable. This information can be derived from cost allocation. Also where cost sharing is required in the multipurpose planning process cost allocation can be applied. Cost allocation also provides information necessary for allocating the real expenditures ensuring that the cost account are maintained in line with plan formulation and allocation principles during the subsequent c...
The materials used for the construction of the designed plan is steel of grade415 and to that for coloums and beams is concrete where grade of concrete for coloums is M40 and for beams is M30.
Vrijhoef, R. and Koskela, L. (2004) ‘The four roles of supply chain management in construction’, European Journal of Purchasing & Supply Management, 6(3-4), pp. 169-178 ScienceDirect [Online]. Available at: http://www.sciencedirect.com/ (Accessed: 6 February 2010).
4. What other transportation costs and issues must Alex consider to make an effective supplier selection? (Coyle, J., & Novack, R., 2011)
A golf club supply chain company needs to find a solution to the supply chain network planning problem. The production for the golf clubs are pending on the ability for the company to meet serval aspects. Currently they are facing the following: 14 components, 10 assembled products, 18 suppliers, 54 customers, and in a 12-month time period. “The main objective is to construct a procurement-assembly plan enabling it to minimize its costs while satisfying the customers’ demand over a given planning horizon is such a way as to hedge against uncertainty.” (Bilgen, B. 2010). Due to several uncertainties; it was determined that using the Fuzzy Mathematical Programming (FMP) model would provide the most accurate computational result. Zadah proposed
2. Increase accuracy in the product cost calculating. While using ABC, direct materials and direct labours can be classified into products, manufacturing overhead will be classified into homogeneous cost pool. Then, apportioned the manufacturing overhead into products according to reasonable distribution cost standard. The standard of cost allocation become more direct and specific leading to many traditional uncontrollable indirect cost change into controllable direct cost. And this provide more accurate information to cost control.
Brooke (1997), explains Estimation as the technical procedure of anticipating the value of the project. Building construction estimation is the process of acquiring the construction value for the whole project before the project starts. Thus, construction attaining process depends hugely on financial management to sustain workability and smooth operations. The delay in construction is a global issue which is due to improper preparation of estimates and lack of drawings (Ajanlekoko, 1987). In accordance to Gkritza (2008), the source of delay in a project are identified to be in the initial stages, like bad quantification, errors in design and ground conditions. Thus, the purpose of a proper estimate is to foretell the cost needed to finish the
According to the bureau of labor (2016)” employment in construction management is suppose to grow five percent from 2014 to 2024, about as fast as an average