Abstract
The steel bars account for a high percentage of material costs for the current construction projects. At the present time, most of the construction projects for the factories of thin‐film transistor liquid crystal display (TFT‐LCD) complete the transactions of steel bars when the suppliers ship the steel bars to the temporary storage/processing sites. This paper applies the buy‐in concept in the Theory of Constraint (TOC) on the supply chain of steel bars. In this study, suppliers are required to establish warehouses at the construction sites and complete the transactions when the formed and processed steel bars are shipped into the factory sites. The aim is to find a win‐win solution to meet with the expectations from constructors as they hope that there is no need to build up inventories but supply is ready at any time. Also, this paper compares and analyzes the traditional supply/inventory model of steel bars and the Demand‐Pull (D‐P) model under the TOC framework. It is proved that Vendor Management Inventory (VMI) in the D‐P model is able to more effectively manage steel bars as a material.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
