IDENTIFICATION OF CONVENIENT INVENTORY MANAGEMENT TECHNIQUES IN CONSTRUCTION OF BUILDINGS

Abstract

Inventory management is the management of inventory and stock. Inventory management is the administration of the supply and storage and availability of materials in order to insure adequate supply without excessive oversupply, the reason being the minimization of total inventory cost. The inventory takes nearly 60% of the money in a project. Investment in inventory takes up a large amount of working capital of a company and represents a large portion of total assets of a business. Effective inventory management directs and redirects to provide lower cost, the response being rapid and assure flexibility to organization. The investment in inventory constitutes the most significant part of current assets and working capital in most of the undertakings. Thus it becomes essential to have proper control and management of inventory. It is also required that there is a better understanding in inventory management because it ensures availability of materials in sufficient quantity as and when required and also to minimize investment in inventories. The research aim is to suggest the finest inventory technique for the each work packages of construction of buildings. In this research work Just In Time (JIT), ABC, Fast Moving Slow Moving Non Moving (FSN) and Vital Essential Desirable (VED) selective inventory management techniques are applied for inventory in construction of buildings In this research work three buildings are analyzed by these four techniques of inventory management. Data gives the best suitable technique for particular work packages. In this research work results of each technique of each work packages are very similar for every building.