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Applying Theory of Constraint on Logistic Management in Large Scale Construction Sites – A Case Study of Steel Bar in TFT‐LCD Factory Build‐Up

Applying Theory of Constraint on Logistic Management in Large Scale Construction Sites – A Case... The steel bars account for a high percentage of material costs for the current construction projects. At the present time, most of the construction projects for the factories of thin‐film transistor liquid crystal display (TFT‐LCD) complete the transactions of steel bars when the suppliers ship the steel bars to the temporary storage/processing sites. This paper applies the buy‐in concept in the Theory of Constraint (TOC) on the supply chain of steel bars. In this study, suppliers are required to establish warehouses at the construction sites and complete the transactions when the formed and processed steel bars are shipped into the factory sites. The aim is to find a win‐win solution to meet with the expectations from constructors as they hope that there is no need to build up inventories but supply is ready at any time. Also, this paper compares and analyzes the traditional supply/inventory model of steel bars and the Demand‐Pull (D‐P) model under the TOC framework. It is proved that Vendor Management Inventory (VMI) in the D‐P model is able to more effectively manage steel bars as a material. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Asian Journal on Quality Emerald Publishing

Applying Theory of Constraint on Logistic Management in Large Scale Construction Sites – A Case Study of Steel Bar in TFT‐LCD Factory Build‐Up

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Publisher
Emerald Publishing
Copyright
Copyright © 2008 Emerald Group Publishing Limited. All rights reserved.
ISSN
1598-2688
DOI
10.1108/15982688200800005
Publisher site
See Article on Publisher Site

Abstract

The steel bars account for a high percentage of material costs for the current construction projects. At the present time, most of the construction projects for the factories of thin‐film transistor liquid crystal display (TFT‐LCD) complete the transactions of steel bars when the suppliers ship the steel bars to the temporary storage/processing sites. This paper applies the buy‐in concept in the Theory of Constraint (TOC) on the supply chain of steel bars. In this study, suppliers are required to establish warehouses at the construction sites and complete the transactions when the formed and processed steel bars are shipped into the factory sites. The aim is to find a win‐win solution to meet with the expectations from constructors as they hope that there is no need to build up inventories but supply is ready at any time. Also, this paper compares and analyzes the traditional supply/inventory model of steel bars and the Demand‐Pull (D‐P) model under the TOC framework. It is proved that Vendor Management Inventory (VMI) in the D‐P model is able to more effectively manage steel bars as a material.

Journal

Asian Journal on QualityEmerald Publishing

Published: Apr 17, 2008

Keywords: Theory of constraint; Steel bar; Thin‐film Transistor Liquid Crystal Display (TFT‐LCD)

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