Logistics optimisation in road construction project

Abstract

PurposeThis study aims to assist the project manager in minimising the material logistics cost of road project by planning the optimal movement of aggregate across three stages of supply chain: sourcing, processing and distribution.Design/methodology/approachThe paper conceptualises the raw material consumption in a road project as a logistics network distribution problem. A linear programming (LP) formulation is constructed with appropriate decision variables by integrating the three stages of material movement. The series of LP scenarios are solved using an LP solver to decide the optimal movement of the aggregate to be consumed in different layers of road segments.FindingsThe results obtained from the model show that planning material logistics of an entire road project using optimisation provides substantial saving in logistics costs than using common sense. Further, the magnitude of cost saving improves as the complexity of the model increases in term of enormous feasible options.Practical implicationsThe model shown in this paper may serve as a basis for planning the logistics of raw materials consumed in the road projects. The small improvement in material flows by optimising supply chain shows sensible cost benefit to the project manager and hence control and monitor the overall cost and activities of the project. The output of the model is also expected to help the project team as an input in the decision-making processes such as appropriate material sourcing contract, capacity assessment of material processing facility and transportation planning.Originality/valueWhile the optimisation models are widely used and popular among the many industrial applications, this research shows distinct application of such a model in managing the logistics of the road construction project.