Realisation of the optimal logistics plan for modular construction


The construction sector is undergoing a shift from in-situ building method to design for manufacturing and assembly (DfMA) systems. Long established in situ construction practices are replaced with processes imported from the manufacturing sector, with component fabrication taking place across several in-house and outsourced manufacturing centres. Construction supply chains, that have so far been focusing on the delivery of raw materials to site, need to be redesigned in support of this transformation, making way to a strengthened, time-critical, logistics system. The objective of this study is to establish a mathematical model for the design of logistics processes in modular construction covering the three common tiers of operations: manufacturing, storage and assembly. Previous studies have indicated that construction site delays constitute the largest cause of schedule deviations. Using the model outlined in this paper we seek to determine how factory manufacturing and inventory management should be adapted to variations in demand on the construction site. A two-stage stochastic programming model is developed to capture all possible demand variations on site. We test the effectiveness this model using a practical case study from the residential construction sector, and discuss the use of the algorithm as the basis of potential modular construction logistics decision support tool

European Logistics Association Workshop 2017