Successful construction projects rely heavily on efficient material inventory management to optimize procurement timelines, minimize waste, and regulate overall project costs. Through a comparison of Lot-for-Lot (L4L), economic order quantity (EOQ), and part period balancing (PPB), this research investigates the optimization of material inventory costs. The study determined inventory costs by adding ordering and holding charges using real data from a palm oil mill foundation project. By eliminating holding costs, L4L increases ordering expenses; by reducing ordering costs, EOQ produces a considerable rise in inventory; and by balancing the two, PPB achieves its goal. The findings stress the need to tailor lotsizing procedures to project-specific variables, such as storage space and demand unpredictability. To help with sustainable project execution and to increase inventory efficiency, this study gives data-driven insights to construction managers. To make the results more applicable, future studies should look at stochastic demand models and incorporate digital inventory systems.

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Comparative Analysis of Lotsizing Methods for Construction Material Inventory Optimization: A Case Study of a Palm Oil Mill Project

  • Mardiaman,
  • Martua M Simanjuntak,
  • Indriasari

摘要

Successful construction projects rely heavily on efficient material inventory management to optimize procurement timelines, minimize waste, and regulate overall project costs. Through a comparison of Lot-for-Lot (L4L), economic order quantity (EOQ), and part period balancing (PPB), this research investigates the optimization of material inventory costs. The study determined inventory costs by adding ordering and holding charges using real data from a palm oil mill foundation project. By eliminating holding costs, L4L increases ordering expenses; by reducing ordering costs, EOQ produces a considerable rise in inventory; and by balancing the two, PPB achieves its goal. The findings stress the need to tailor lotsizing procedures to project-specific variables, such as storage space and demand unpredictability. To help with sustainable project execution and to increase inventory efficiency, this study gives data-driven insights to construction managers. To make the results more applicable, future studies should look at stochastic demand models and incorporate digital inventory systems.