Managing Supply for Construction Project with Uncertain Starting Date.
Masters thesis, Concordia University.
- Accepted Version
There is a growing interest in supply management systems ¬¬in today’s competitive business environment. Importance of implementing supply management systems especially in home construction industry is due to the fact that several risks arising from different sources can adversely affect the project financially or its timely completion. Some risks of construction projects are out of managers’ control while other risks such as supply related ones can usually be controlled and directed by effective managerial tactics.
In this thesis, we address the supplier selection problem (SSP) in wood-base construction projects in the presence of project commencement uncertainties. The project could be delayed for any reason and thus materials required for the project may not be needed on the promised date, however, pursuing the supplier for new delivery date may not be easy and without risk. Accepting the delivery before the project commencement date will be again a costly option because of the high holding cost. In this thesis, we present two problem cases and present heuristic based solution approaches. In the first case we assume that price of the product increases with the delay. In the second case we assume that promised quantity at the agreed price reduces with the delay. The proposed approaches are tested on the randomly generated data set and compared with the optimal solutions.
The problems considered in this research are novel and the proposed approaches deal with the important and common risks in construction industry in order to achieve a robust supply chain. The solution approaches presented in this thesis can be applied to different industries to improve the quality and efficiency of supplier-buyer collaborations.
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