The Inventory Management Optimization Research Of Construction Materials

In the recent years, all works of life have improved the efficiency of circulation ingoods and materials, reducing the cost of circulation as a result of the introduction ofthe modern inventory management concept. China’s construction industry maintainssustainable growth to different degree year by year under the excellent situation whereGDP is keeping growing. The pillar status of construction industry was reflected andstrengthened. With the economic globalization and the growing competition, theproblems and threats which Chinese construction industry are faced with are various.The modern inventory management concept have provided new means of how toenhance competitiveness for the construction industry.The ultimate goal of moderninventory management concept is completing the project with the minimum costeffectively. Optimizing and implementing the purchasing links are the best way toachieve this goal.(1) In this paper, the objects of the research is logistics management in level2supply chain which is combined by general contracting enterprises and their upstreamsuppliers, focusing on management theory and optimization methods about procurementand inventory.The focuses in this paper are the links of purchasing and inventory, itwas studied by comparative analysis, system analysis method, the method whichcombined qualitative analysis and quantitative analysis and so on. Those methods arecombined with the features and special needs of the construction industry. The overallobjective of the inventory management of the construction industry is supplying rawmaterials and auxiliary materials required for projects timely, avoiding or reducing the backlog of inventory, and avoiding the idle funds to form the best material supplystatus.(2) The purpose of the paper is to achieve the integrative optimization of the wholesupply chain. It aims at the features and problems about construction purchasing andinventory management, adopting JMI (Jointly Managed Inventory) to optimize therelationship of purchasing and inventory. Based on the confirmation of the optimizingstrategy, the paper set up JMI optimizing model where purchasing and inventory can becontrolled.(3) The paper used the genetic algorithm to get the optimization solution to therelated cases and introduced the procedure of the optimization solution by the geneticalgorithm, leading to the result of the optimal solution and the optimized parameters.Although the space to solve the model is very large, combined the characteristics of thegenetic algorithm, the reasonable solution can be carried out within a reasonable periodof time, which can make sure that the model can be applied to the reality of China’sconstruction industry. On one hand, in this study, the application of genetic algorithmsis able to ensure the efficiency of the optimal solution. On the other hand, the targetachievement rate is very high. Besides, time of calculation required is greatly reduced.Thus, the application of models and algorithms in the research will help to increase thecommon interests of both the supply and demand in the supply chain of constructionmaterials.The paper have studied the theories of inventory management in the constructionindustry, whose results have positive significance for promoting the inventorymanagement theory, controlling the project costs reasonably, reducing the constructioncost of the project and promoting the progress of the project effectively.