Analysis of Material Cost in Road Construction through Lot Sizing Techniques

Abstract

In a construction project, materials account for more than 40% of the total project cost. A small saving in material cost through efficient management of materials can result to a large saving in the total project cost. One of the root causes of improper material management is that materials are ordered based on the information from project schedule. So in this study material cost optimization is done, by using MRP techniques based on the details collected from the sites of village roads. The study includes mainly three sections, namely factors identification, data collection and its analysis. Data collection on factors which are based on time, cost, quality, quantity and location of various activities were acquired. Collected data’s are evaluated and material cost is optimized. Efficient material planning and management of materials can save some extent of cost in the total material cost and it is more beneficial for the road construction firms to reduce their total project cost.