Material Risk Pooling: Strategies for Precast Fabrication

Abstract

Materials used in precast fabrication are different from those cast in the construction site. When fabricators lack production materials, they have to await the materials until the supplier transports them to the precast fabricator. The primary objective of the study is to enhance on-time delivery with relatively low inventory by leading risk-pooling concept with lateral transshipment strategy. To achieve the goal, this research develops lateral transshipment strategies by considering the characteristics and requirements of precast production. The computer simulation technique is then used to analyze the material risk pooling strategies. The proposed method can be used to analyze optimum transshipment policy for shipping the required materials from manufacturing plants that have surplus to others starving for materials. Risks of late delivery can thus be reduced.