Safety Stock in Inventory Management and Wastage Analysis at Construction Sites

Abstract

Inventory control in construction projects is a key function to the project success. Inventory serves as a link between planning and execution of a project. In construction industry, majority of the cost is involved in inventories so it is important to keep the inventories under strict control otherwise it may lead to cost and time overrun. As construction industry consumes large part of inventories, so it produces huge amount of wastes. It is established that the wastages have a significant negative impact on cost and time of a project. So, it is of utmost importance to know the impact of these causes of wastages on cost and time so that a proper mitigation plan can be prepared and impact of these causes of wastage be reduced or eliminated. This paper mainly put emphasis on safety stock analysis aiming to determine the safety stock of inventories after calculation of average lead time, actual lead time, average demand per day, standard deviation and service factor from the set of data obtained from the site. It also aims to provide a model for automation of safety stocks to prevent stock-outs using PYTHON software. Apart from that, it involves a questionnaire survey to analyze the impact of various causes of wastage in construction on the basis of cost and time. © 2021, Springer Nature Singapore Pte Ltd.