https://doi.org/10.24928/2021/0128

Early Due Low Uncertainty (EDLU) for Improving Supply Chain Performance Under Order Variability in Precast Concrete Production

Taehoon Kim¹ & Yong-Woo Kim²

Abstract

The AEC (architect, engineering, and construction) industry finds a trend that more projects are adopting a prefabrication for various reasons. In a context of prefabrication, reliable supply chain is one of critical factors for project success. One of prefabricated products being adopted in building construction is precast concrete. A precast conctete supplier needs to optimize his production schedule while meeting various demands from multiple customers (i.e., contractors on project site). Most suppliers rely on dispatching rule in their production scheduling. However, contractor’s order variability makes an impact on a supplier’s production schedule and the reliability of supply chain. The authors proposed a new dispatching rule (EDLU, early due low uncertainty)taking into account a contractor’s order reliability, followed by simulation experiments. The study suggests that (1) order variability leads to variance of prefabricated product delivery; (2) EDLU is more effective than traditional dispatching rules when order variability increases; (3) a proposed dispatching rule of EDLU gives incentives to a contractor’s reliable order by giving production priority to orders with low uncertainty

Keywords

Precast concrete, production schedule, dispatching rule, EDLU (early due low uncertainty), operational strategy.

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Reference

Kim, T. & Kim, Y. 2021. Early Due Low Uncertainty (EDLU) for Improving Supply Chain Performance Under Order Variability in Precast Concrete Production, Proc. 29th Annual Conference of the International Group for Lean Construction (IGLC) , 965-973. doi.org/10.24928/2021/0128

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