Unit Cost Prediction Model Development for the Domestic Reinforced Bar using System Dynamics

Abstract

Construction industry has become a larger and highly competitive industry. A successful construction project cannot be achieved only by efficient and fast construction techniques but also reasonable material cost and adequate transferring time of materials to installation. The steel industry in East Asia has become the mainstream in overall steel industries in over the world during the middle of the 21st century. China, Japan and Korea has been the main exportation countries. However, even though the international economic failure, China has increased the exportation amount and became an only exporting country which must be considered a serious problem regarding competitiveness in the international steel exportation industry. Thus, this study analyses the factors affecting the supply and demand amount of reinforced bars in the domestic field and moreover suggesting a unit cost prediction model using the System Dynamics simulation methodology, one of powerful prediction tools using cause-effect relationships. It is expected that this study contributes to the domestic steel industry growth in competitiveness in the international industry. In addition, the methodology used in this paper presents the frameworks for appropriate tools for market trend analysis and prediction of other markets.