Sustainable construction supply chain management with the spotlight of inventory optimization under uncertainty

In this research, a supply chain network has been designed for inventory management using not only the project site storage facility but also an ancillary warehouse to keep materials. In order to make decision about the appropriate place for building the warehouse, multi-criteria decision-making techniques have been applied. Since the transportation sector, as the most important energy-consuming part, plays a significant role in global warming after power stations and the delivery of materials will have environmental impacts, this research tried to minimize the external cost of global warming caused by transportation. In this study, a mathematical formulation is presented to solve the problem of ordering the required amount to project site, while taking into account an ancillary warehouse. To quell the discussion, a numerical example has been demonstrated. The findings show that uncertainty considerations fortify the strict decision making and can increase the confidence level.

Automated summary

This research designed a supply chain network for inventory management by utilizing project site storage facilities and an ancillary warehouse, with a focus on minimizing the external cost of global warming caused by transportation. The study demonstrates that considering uncertainty can enhance strict decision-making and increase confidence levels.