Share:


Buffering policies for prefabricated construction supply chain subject to material lead time and activity duration uncertainties

    Hui Lu Affiliation
    ; Dian Liu Affiliation
    ; Jue Li Affiliation

Abstract

Supply chain management plays a pivotal role in the smooth execution of prefabricated construction. One key aspect involves strategically placing and sizing buffers to handle uncertainties (e.g., stochastic material lead-times and activity durations) within the prefabricated construction supply chain (PCSC). This study examines three buffering policies based on varying combinations of time and inventory buffers to mitigate stochastic material delays and activity prolongs in PSCS, namely, pure inventory buffering policy, pure time buffering policy, and mixed inventory-time buffering policy. To enable this analysis, we characterize how stochastic material delays originating from off-site supply chains impact project schedules, and then develop mathematical procedures for sizing inventory and/or time buffers under the three buffering policies. Case application and numerical analysis are conducted to investigate the performance of these buffering policies and the impact of the project characteristics on them (e.g., due date and arrival rate). Finally, insights are extracted to assist managers in choosing appropriate policies for projects with different characteristics. In general, combining inventory and time buffers results in better performance, particularly under tight project deadlines and high arrival rates. The pure time buffering policy can also be a viable option in specific situations, allowing managers to have more choices.

Keyword : prefabricated construction, supply chain management, time buffer, inventory buffer, uncertainty

How to Cite
Lu, H., Liu, D., & Li, J. (2024). Buffering policies for prefabricated construction supply chain subject to material lead time and activity duration uncertainties. Journal of Civil Engineering and Management, 30(2), 99–113. https://doi.org/10.3846/jcem.2024.20809
Published in Issue
Feb 6, 2024
Abstract Views
565
PDF Downloads
438
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Ballard, G., & Howell, G. (1994). Implementing lean construction: Stabilizing workflow. In Proceedings 2nd Annual Conference of the International Group for Lean Construction (pp. 101–110), Santiago, Chile.

Ballard, G., & Howell, G. (1998). Shielding production: Essential step in production control. Journal of Construction Engineering and Management, 124(1), 11–17. https://doi.org/10.1061/(ASCE)0733-9364(1998)124:1(11)

Ballard, G., & Howell, G. (1995). Toward construction JIT. In Conference of the Association of Researchers in Construction Management, Sheffield, UK.

Ben-Ammar, O., Bettayeb, B., & Dolgui, A. (2019). Optimization of multi-period supply planning under stochastic lead times and a dynamic demand. International Journal of Production Economics, 218, 106–117. https://doi.org/10.1016/j.ijpe.2019.05.003

Brown, K., Schmitt, T. G., Schonberger, R. J., & Dennis, S. (2004). Quadrant Homes applies lean concepts in a project environment. Interfaces, 34, 442–450. https://doi.org/10.1287/inte.1040.0108

Browne, M. W. (2000). Cross-validation methods. Journal of Mathematical Psychology, 44(1), 108–132. https://doi.org/10.1006/jmps.1999.1279

Bruni, M. E., Pugliese, L. D. P., Beraldi, P., & Guerriero, F. (2017). An adjustable robust optimization model for the resource-constrained project scheduling problem with uncertain activity durations. Omega, 71, 66–84. https://doi.org/10.1016/j.omega.2016.09.009

Chakrabortty, R. K., Sarker, R. A., & Essam, D. L. (2016). Multi-mode resource constrained project scheduling under resource disruptions. Computers & Chemical Engineering, 88, 13–29. https://doi.org/10.1016/j.compchemeng.2016.01.004

Chakrabortty, R. K., Sarker, R. A., & Essam, D. L. (2017). Resource constrained project scheduling with uncertain activity durations. Computers & Industrial Engineering, 112, 537–550. https://doi.org/10.1016/j.cie.2016.12.040

Chaturvedi, A., & Martínez-de-Albéniz, V. (2016). Safety stock, excess capacity or diversification: Trade-offs under supply and demand uncertainty. Production and Operations Management, 25(1), 77–95. https://doi.org/10.1111/poms.12406

Ekanayake, E., Shen, G., & Kumaraswamy, M. M. (2020). Critical capabilities of improving supply chain resilience in industrialized construction in Hong Kong. Engineering, Construction and Architectural Management, 28(10), 3236–3260. https://doi.org/10.1108/ECAM-05-2020-0295

Elfving, J. A., Ballard, G., & Talvitie, U. (2010). Standardizing logistics at the corporate level towards lean logistics in construction. In Proceedings IGLC-18 (pp. 222–231), Technion, Haifa, Israel.

Fu, N., Lau, H. C., & Varakantham, P. (2015). Robust execution strategies for project scheduling with unreliable resources and stochastic durations. Journal of Scheduling, 18(6), 607–622. https://doi.org/10.1007/s10951-015-0425-1

Goldratt, E. M. (1997). Critical chain. North River Press, Great Barrington, MA.

Graves, S. C., & Willems, S. P. (2003). Supply chain design: Safety stock placement and supply chain configuration. Handbooks in Operations Research and Management Science, 11, 95–132. https://doi.org/10.1016/S0927-0507(03)11003-1

Han, Y., Yan, X., & Piroozfar, P. (2022). An overall review of research on prefabricated construction supply chain management. Engineering, Construction and Architectural Management, 30(10), 5160–5195. https://doi.org/10.1108/ECAM-07-2021-0668

Hausman, W. H., Lee, H. L., & Zhang, A. X. (1998). Joint demand fulfillment probability in a multi-item inventory system with independent order-up-to policies. European Journal of Operational Research, 109, 646–659. https://doi.org/10.1016/S0377-2217(97)00152-5

Herroelen, W. S., & Leus, R. (2001). On the merits and pitfalls of critical chain scheduling. Journal of Operations Management, 19(5), 559–577. https://doi.org/10.1016/S0272-6963(01)00054-7

Herroelen, W. S., & Leus, R. (2004). Stability and resource allocation in project planning. IIE Transactions, 36(7), 667–682. https://doi.org/10.1080/07408170490447348

Horman, M. J. (2000). Process dynamics: Buffer management in building project operations [PhD dissertation]. The University of Melbourne, Australia.

Horman, M. J., & Thomas, H. R. (2005). Role of inventory buffers in construction labor performance. Journal of Construction Engineering and Management, 131(7), 834–843. https://doi.org/10.1061/(ASCE)0733-9364(2005)131:7(834)

Huber, L. (2010). Validation of analytical methods. Agilent Technologies, Germany.

Hsu, P. Y., Aurisicchio, M., & Angeloudis, P. (2017). Establishing outsourcing and supply chain plans for prefabricated construction projects under uncertain productivity. In T. Bektaş, S. Coniglio, A. Martinez-Sykora, & S. Voß (Eds.), Computational logistics. ICCL 2017: Lecture notes in computer science (Vol. 10572, pp. 529–543). Springer, Cham. https://doi.org/10.1007/978-3-319-68496-3_35

Hsu, P. Y., Angeloudis, P., & Aurisicchio, M. (2018). Optimal logistics planning for modular construction using two-stage stochastic programming. Automation in Construction, 94, 47–61. https://doi.org/10.1016/j.autcon.2019.102898

Hsu, P. Y., Aurisicchio, M., & Angeloudis, P. (2019). Risk-averse supply chain for modular construction projects. Automation in Construction, 106, Article 102898.

Kim, T., Kim, Y. W., & Cho, H. (2020). Dynamic production scheduling model under due date uncertainty in precast concrete construction. Journal of Cleaner Production, 257, Article 120527. https://doi.org/10.1016/j.jclepro.2020.120527

Lambrechts, O., Demeulemeester, E., & Herroelen, W. (2008). Proactive and reactive strategies for resource-constrained project scheduling with uncertain resource availabilities. Journal of Scheduling, 11(2), 121–136. https://doi.org/10.1007/s10951-007-0021-0

Lambrechts, O., Demeulemeester, E., & Herroelen, W. (2011). Time slack-based techniques for robust project scheduling subject to resource uncertainty. Annals of Operations Research, 186(1), 443–464. https://doi.org/10.1007/s10479-010-0777-z

Leus, R. (2003). The generation of stable project plans [PhD thesis]. Department of Applied Economics, Katholieke Universiteit Leuven, Belgium.

Li, H., Cao, Y., Lin, Q., & Zhu, H. (2022). Data-driven project buffer sizing in critical chains. Automation in Construction, 135, Article 104134. https://doi.org/10.1016/j.autcon.2022.104134

Liang, Y., Cui, N., Hu, X., & Demeulemeester, E. (2020). The integration of resource allocation and time buffering for bi-objective robust project scheduling. International Journal of Production Research, 58(13), 3839–3854. https://doi.org/10.1080/00207543.2019.1636319

Liu, Q., & Tao, Z. (2015). A multi-objective optimization model for the purchasing and inventory in a three-echelon construction supply chain. In Proceedings of the 9th International Conference of Management Science and Engineering Management (pp. 245–253). Springer, Cham. https://doi.org/10.1007/978-3-662-47241-5_20

Liu, J., & Lu, M. (2018). Constraint programming approach to optimizing project schedules under material logistics and crew availability constraints. Journal of Construction Engineering and Management, 144(7), 4018041–4018049. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001507

Liu, J., Gong, E., Wang, D., & Teng, Y. (2018). Cloud model-based safety performance evaluation of prefabricated building project in China. Wireless Personal Communications, 102, 3021–3039. https://doi.org/10.1007/s11277-018-5323-3

Lu, H., Wang, H., Xie, Y., & Li, H. (2016). Construction material safety-stock determination under nonstationary stochastic demand and random supply yield. IEEE Transactions on Engineering Management, 63(2), 201–212. https://doi.org/10.1109/TEM.2016.2536146

Lu, H., Wang, H., Xie, Y., & Wang, X. (2018). Study on construction material allocation policies: A simulation optimization method. Automation in Construction, 90, 201–212. https://doi.org/10.1016/j.autcon.2018.02.012

Ma, Z., Demeulemeester, E., He, Z., & Wang, N. (2019). A computational experiment to explore better robustness measures for project scheduling under two types of uncertain environments. Computers & Industrial Engineering, 131, 382–390. https://doi.org/10.1016/j.cie.2019.04.014

Moradi, H., & Shadrokh, S. (2019). A robust scheduling for the multi-mode project scheduling problem with a given deadline under uncertainty of activity duration. International Journal of Production Research, 57(10), 3138–3167. https://doi.org/10.1080/00207543.2018.1552371

Newbold, R. C. (1998). Project management in the fast lane-applying the theory of constraints. The St. Lucie Press.

Ning, M., He, Z., Jia, T., & Wang, N. (2017). Metaheuristics for multi-mode cash flow balanced project scheduling with stochastic duration of activities. Automation in Construction, 81, 224–233. https://doi.org/10.1016/j.autcon.2017.06.011

Pan, N. H., Lee, M. L., & Chen, S. Q. (2011). Construction material supply chain process analysis and optimization. Journal of Civil Engineering and Management, 17(3), 357–370. https://doi.org/10.3846/13923730.2011.594221

Peng, J. L., & Peng, C. (2022). Buffer sizing in critical chain project management by brittle risk entropy. Buildings, 12(9), Article 1390. https://doi.org/10.3390/buildings12091390

Poshdar, M., González, V. A., Raftery, G. M., Orozco, F., Romeo, J. S., & Forcael, E. (2016). A probabilistic-based method to determine optimum size of project buffer in construction schedules. Journal of Construction and Engineering Management, 142(10), Article 04016046. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001158

Poshdar, M., González, V. A., Raftery, G. M., Orozco, F., & Cabrera-Guerrero, G. G. (2018). A multi-objective probabilistic-based method to determine optimum allocation of time buffer in construction schedules. Automation in Construction, 92, 46–58. https://doi.org/10.1016/j.autcon.2018.03.025

Russell, M. M., Howell, G., Hsiang, S. M., & Liu, M. (2013). Application of time buffers to construction project task durations. Journal of Construction and Engineering Management, 139(10), Article 04013008. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000735

Said, H., & El-Rayes, K. (2010). Optimizing material procurement and storage on construction sites. Journal of Construction and Engineering Management, 137(6), 421–431. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000307

Sargent, R. G. (2013). Verification and validation of simulation models. Journal of Simulation, 7(1), 12–24. https://doi.org/10.1057/jos.2012.20

Schatteman, D., Herroelen, W., Van de Vonder, S., & Boone, A. (2008). A methodology for integrated risk management and proactive scheduling of construction projects. Journal of Construction and Engineering Management, 134(11), 885–893. https://doi.org/10.1061/(ASCE)0733-9364(2008)134:11(885)

Schoenmeyr, T., & Graves, S. C. (2022). Coordination of multiechelon supply chains using the guaranteed service framework. M&SOM-Manufacturing & Service Operations Management, 24(3), 1859–1871. https://doi.org/10.1287/msom.2021.1043

Shah, M., & Zhao, Y. (2009). Construction resource management – ICM Inc (Rutgers Business School case study). Newark.

She, B., Chen, B., & Hall, N. G. (2021). Buffer sizing in critical chain project management by network decomposition. Omega, 102, Article 102382. https://doi.org/10.1016/j.omega.2020.102382

Strohhecker, J. & Größler, A. (2019). Threshold behavior of optimal safety stock coverage in the presence of extended production disruptions. Journal of Modelling in Management, 15(2), 441–458. https://doi.org/10.1108/JM2-03-2019-0074

Thevenin, S., Adulyasak, Y., & Cordeau, J. F. (2021). Material requirements planning under demand uncertainty using stochastic optimization. Production and Operations Management, 30(2), 475–493. https://doi.org/10.1111/poms.13277

Tommelein, I. D. (2020). Takting the parade of trades: Use of capacity buffers to gain work flow reliability. In 28th Annual Conference of the International Group for Lean Construction (IGLC28), Berkeley, California, USA. https://doi.org/10.24928/2020/0076

Tommelein, I. D., Ballard, G., & Kaminsky, P. (2009). Supply chain management for lean project delivery. In W. J. O’Brien, C. T. Formoso, R. Vrijhoef, & K. London, K. (Eds.), Construction supply chain management handbook (pp. 118–139). CRC Press/Taylor & Francis.

Tukel, O. I., Rom, W. O., & Eksioglu., S. D. (2006). An investigation of buffer sizing techniques in critical chain scheduling. European Journal of Operational Research, 172(2), 401–416. https://doi.org/10.1016/j.ejor.2004.10.019

Van de Vonder, S., Demeulemeester, E., Herroelen, W., & Leus, R. (2005). The use of buffers in project management: the trade-off between stability and makespan. International Journal of Production Economics, 97, 227–240. https://doi.org/10.1016/j.ijpe.2004.08.004

Van de Vonder, S., Demeulemeester, E., & Herroelen, W. (2008). Proactive heuristic procedures for robust project scheduling: An experimental analysis. European Journal of Operational Research, 189(3), 723–733. https://doi.org/10.1016/j.ejor.2006.10.061

Walsh, K. D., Hershauer, J. C., Tommelein, I. D., & Walsh, T. A. (2004). Strategic positioning of inventory to match demand in a capital projects supply chain. Journal of Construction and Engineering Management, 130(6), 818–826. https://doi.org/10.1061/(ASCE)0733-9364(2004)130:6(818)

Wambeke, B. W., Hsiang, S., & Liu, M. (2011). Causes of variation in construction project task starting times and duration. Journal of Construction and Engineering Management, 137(9), 663–677. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000342

Wang, Z., Hu, H., Gong, J., Ma, X., & Xiong, W. (2019). Precast supply chain management in offsite construction: a critical literature review. Journal of Cleaner Production, 232, 1204–1217. https://doi.org/10.1016/j.jclepro.2019.05.229

Wang, Z., Wang, T., Hu, H., Gong, J., Ren, X., & Xiao, Q. (2020). Blockchain-based framework for improving supply chain traceability and information sharing in precast construction. Automation in Construction, 111, Article 103063. https://doi.org/10.1016/j.autcon.2019.103063

Xu, X., & Zhao, Y. (2010). Some economic facts of the prefabricated housing (Industry report). Rutgers Business School.

Xu, X., Zhao, Y., & Chen, C.Y. (2016). Project-driven supply chains: integrating safety-stock and crashing decisions for recurrent projects. Annals of Operations Research, 241(1), 225–247. https://doi.org/10.1007/s10479-012-1240-0

Yeo, K. T., & Ning, J. H. (2002). Integrating supply chain and critical chain concepts in engineering-procure-construct (EPC) projects. International Journal of Project Management, 20, 253–262. https://doi.org/10.1016/S0263-7863(01)00021-7

Zahid, T., Agha, M. H., & Schmidt, T. (2019). Investigation of surrogate measures of robustness for project scheduling problems. Computers & Industrial Engineering, 129, 220–227. https://doi.org/10.1016/j.cie.2019.01.041

Zarghami, S. A., Gunawan, I., Corral de Zubielqui, G., & Baroudi, B. (2020). Incorporation of resource reliability into critical chain project management buffer sizing. International Journal of Production Research, 58(20), 6130–6144. https://doi.org/10.1080/00207543.2019.1667041

Zarghami, S. A., & Zwikael, O. (2023). Buffer allocation in construction projects: a disruption mitigation approach. Engineering, Construction and Architectural Management. https://doi.org/10.1108/ECAM-10-2022-0925

Zhai, Y., Zhong, R. Y., & Huang, G. Q. (2018). Buffer space hedging and coordination in prefabricated construction supply chain management. International Journal of Production Economics, 200, 192–206. https://doi.org/10.1016/j.ijpe.2018.03.014

Zhai, Y., Fu, Y., Xu, G., & Huang, G. (2019a). Multi-period hedging and coordination in a prefabricated construction supply chain. International Journal of Production Research, 57(7), 1949–1971. https://doi.org/10.1080/00207543.2018.1512765

Zhai, Y., Xu, G., & Huang, G. Q. (2019b). Buffer space hedging enabled production time variation coordination in prefabricated construction. Computers & Industrial Engineering, 137, Article 106082. https://doi.org/10.1016/j.cie.2019.106082

Zhu, H., Lu, Z., Lu, C., & Ren, Y. (2021). Modeling and algorithm for resource-constrained multi-project scheduling problem based on detection and rework. Assembly Automation, 41(2), 174–186. https://doi.org/10.1108/AA-09-2020-0132

Zipkin, P. (2000). Foundations of inventory management. McGraw Hill.

Zohrehvandi, S., & Khalilzadeh, M. (2019). APRT-FMEA buffer sizing method in scheduling of a wind farm construction project. Engineering, Construction and Architectural Management, 26(6), 1129–1150. https://doi.org/10.1108/ECAM-04-2018-0161