A mathematical modelling for integrated construction and production supply chain network design

Area of Science:

• Operations Research
• Supply Chain Management
• Industrial Engineering

Background:

• The construction industry is vital to economies, increasingly adopting supply chain management principles.
• Classical supply chain models differ from construction, where the final output is a structure, not a manufactured product.

Purpose of the Study:

• To integrate construction supply chain considerations into production supply chain planning.
• To address the gap in literature regarding construction's role in production supply chain topology design.

Main Methods:

• Formulation of an integrated problem using a mixed integer linear programming optimization model.
• Determination of optimal amounts for building materials, raw materials, labor, equipment, and transportation.

Main Results:

• The proposed model aims to design an optimal supply chain structure.
• Minimization of combined construction and production costs is a key objective.
• The model considers factors like facility location, capacity, and geographic positioning.

Conclusions:

• The study provides a mathematical framework for optimizing integrated construction and production supply chains.
• The model's performance is illustrated through a range of test problems.
• This research offers a novel approach to strategic supply chain design in the construction sector.