Track: Operations Research

Abstract

In the past decade, construction supply chain management (CSCM) has become a considerable concern, because the cost of materials and material-related activities in most construction projects accounts for 50% to 60% of the total project costs. Where material costs are mostly paid to suppliers, supplier selection is one of the most important issues in running a supply chain system. Construction materials procurement and management activities play a role in responding to the challenges of reducing inventories, speeding up deliveries, and lowering overall project costs. This study proposes supplier selection with a multi-criteria decision-making method (MCDM) approach, as well as transportation planning with a transshipment model that is suitable for the construction industry. The hybrid MCDM strategy is applied sequentially by combining Criteria Importance Through Inter-Criteria Correlation (CRITIC) and Evaluation Based on Distance from Average Solution (EDAS) to get more effective results and get some of the best suppliers from the available options, which will then be simulated routes cost-optimized transportation using the transshipment model. This research will produce optimal procurement costs and show the relationship between supplier selection and material transportation to overall procurement costs in the construction industry.