Optimizing Material Procurement and Storage on Construction Sites

Abstract

Efficient planning of materials procurement and storage on construction sites can lead to significant improvements in construction productivity and project profitability. Existing research studies focus on material procurement and storage layout as two separate planning tasks without considering their critical and mutual interdependencies. This paper presents the development of a new optimization model for construction logistics planning that is capable of simultaneously integrating and optimizing the critical planning decisions of material procurement and material storage on construction sites. The model utilizes genetic algorithms to minimize construction logistics costs that cover material ordering, financing, stock-out, and layout costs. The model incorporates newly developed algorithms to estimate the impact of potential material shortages on-site because of late delivery on project delays and stock-out costs. An application example is analyzed to demonstrate the capabilities of the construction logistics planning model in simultaneously optimizing material procurement decisions and storage layout plans.