DECISION MAKING BY FUZZY LOGIC FOR

INVENTORY MANAGEMENT TECHNIQUES

FOR COMMERCIAL CONSTRUCTION
PROJECTS IN VALSAD REGION
1
Jaykumar Prajapati, 2Prof. Anuja Tidke
1
Student, 2Assistant Professor,
1
Civil Engineering Department,
1
Parul Institute of Technology, Parul University, Vadodara, India
________________________________________________________________________________________________________

Abstract: Materials management is an important element in project planning and control. Materials represent a major expense in
construction, so minimizing procurement or purchase costs presents important opportunities for reducing costs. Poor materials
management can also result in large and avoidable costs during construction Materials management is defined as the management
system for planning and controlling all necessary efforts to ensure that the right quality and quantity of materials and installed
equipment's are appropriately specified in a timely manner, are obtained at reasonable cost, and are available when needed. Some
studies have also concluded that the materials accounts for about 50-60% of the overall project cost. In this study the various
methods of material management techniques are identified for the commercial building type of project and decision is being made
bythe use of fuzzy logic.

Index Terms – Material Management, Inventory Analysis, Project Management, Project Cost, Fuzzy Logic
________________________________________________________________________________________________________
I. INTRODUCTION
Construction materials management is generally recognized to be integrated coordination of materials takeoff, purchasing, expediting,
receiving, warehousing and distribution. When these functions are not properly managed, materials shortages, surpluses, and cash flow
problems are likely to occur. Costly labor delays result when the required quantity or quality of materials are not available when needed.
The attributes of materials management systems are discussed and the essential elements of a successful system identified. Owner-
contractor, engineer-contractor, and home office-project site communications appear to be critical to the success of the materials
management effort. Preconstruction materials planning and personnel orientation and training are also important. The complex on-line
computer programs that are used to coordinate the materials management effort are costly, but essential, if the desired degree of control is
to be exerted to prevent potential shortages, surpluses, and cash flow problems. The materials management process actually begins when a
materials takeoff is performed to produce a bill of materials. But before bills of materials can be created, materials specifications and
materials numbering or coding systems must be established. Unfortunately, no industry standards have been devised for coding either the
bulk materials or the engineered materials used in industrial construction. As a result, coding systems and specifications established by
individual design firms must somehow be unified and transferred to the contractor's materials management system. This codification is
helpful for the application of the ABC analysis Material management is a major problem in the Indian construction industry that has
important implications in both the efficiency of the industry and the environmental impact of construction projects due to lack of effective
materials management and planning. This can be planned by various methods of material management like ABC, XYZ, HML, FSN,
VED, SDE, GOLF and SOS. This all methods are having different advantages and disadvantages which help in the selection of the
method to be used in accordance with the project characteristics. As well as using fuzzy logic for decision making in the selection of
the inventory analysis techniques for construction ofthe commercial type of buildings in the Valsad region of the southern Gujarat using
different type of fuzzy concepts like fuzzy sets, crisp sets etc.
II. LITERATURE REVIEW

(Shreesha. S, 2016) In any Construction Project material accounts for 50% to 60% of overall Project cost. ABC analysis and EOQ
analysis plays an important role in Material management. During this present work due to unavailability of proper data, reduction
in cost could not be judged properly and also percentage of savings is less because contractor has given some importance to
material management. But these two analysis surely help in wastage control, right incoming quantity, and proper control and
reduce the lead time. But any how they have concluded with 1% saving of overall cost of the project.

(Hemishkumar Patel, 2015) It is clearly important to manage all materials from the design stage to the construction stage. The
waste of materials should also be minimized during construction stage in order to avoid loss of profit. Failure in managing site
material and inventory will result in cost overrun, delays in project completion and reduce overall project performance. Better
coordination among purchase and finance department will help in achieving greater efficiency in Inventory management. Firm,
employing proper material management system can have increased their overall efficiency by 35%.

(Rohan J. Madgi, 2018) Here authors have picked the HML analysis with the EOQ analysis for inventory analysis for the
material management in the company and they have concluded with this results,
 The total number of times placing the order can be reduced such that documentation, processing and time can be
saved i.e. Total number of orders can be saved around 75%.
 By applying Economic order quantity analysis to the materials, the inventory cost around 4% can be saved.
 Also by knowing the demand of usage of materials, we can determine the reordering level by keeping some amount of
safety stock such that there will be continuous supply of material and no delay of work.

(Ujjavala Patel, 2017) In this contemplate the author has discussed about the current material management practices as well as
inventory techniques. In order to maintain the inventory at optimum level technique such as EOQ analysis were performed. It is
thus concluded that by implementing the above mentioned techniques. The study clearly shows the importance to manage all
materials from the design stage to the construction stage. The systematic literature review identifies that materials management
processes require a transformation to improve the overall process in handling of materials for more efficiency and effectiveness
on the construction site. This is because poor handling of construction materials affects the overall performance of construction
projects in terms of time, budget, quality and productivity. The total cost of material may be 54% of total cost; so that it is
important for contractor to consider that timely availability of material is potential cause of successful completion.

(P. Ezhilmathi, 2017) In this paper the qualitative data in regards to deviation is designed and actual materials. In the second
phase of the paper the problems of the stock out were overcome. The outcome of this study reveals that the total cost of the
project is reduced by using EOQ analysis. Construction material constitutes a major cost component in any construction project.
The total cost of material may be 52% of total cost, so that it is important factor to consider that timely availability of material is
potential cause of successful completion of project.

(I.Jayanth, 2018) Here author have recognized the factors affecting inventory control management, construction professionals
should focus on these factors to improve their management skills and give some new techniques to implement and to maintain
that in inventory control management in construction industries. The results specify that the most significant factors to affect the
inventory control management are inventory premises, freight charges, and materials handling equipment, Transportation and
material cost. Construction professionals should diminish these factors by using some new techniques of inventory management
control techniques.

(Jyoti Sanjeev Mohopadkar, 2017) Here author have recognized the factors affecting inventory control management,
construction professionals should focus on these factors to improve their management skills and give some new techniques to
implement and to maintain that in inventory control management in construction industries. The results specify that the most
significant factors to affect the inventory control management are inventory premises, freight charges, and materials handling
equipment, Transportation and material cost. Construction professionals should diminish these factors by using some new
techniques of inventory management control techniques.

(V. RathinaKumar, 2018) This paper mainly focuses on materials planning and inventory control as these are the major aspects of
material management. S-curve analysis is performed to measure the fluctuation between estimated materials cost and market
materials cost. The major reasons for this are identified by interviewing engineers and contractors. Inventory control techniques
such as ABC classification as well as EOQ analysis are conducted. The result of the S- curve analysis show that the actual
materials cost is higher than the planned materials cost in most cases. ABC and EOQ analysis are applied to maintain sufficient
stock in inventory and any given point of time, to protect the materials in the inventory against damages, to reduce inventory
holding costs, to overcome stock-out problems and to maintain the inventory in an optimal level. Sensitivity check is applied to
the results of EOQ analysis.
(Miss Monika R., 2017) This literature deals with ABC and EOQ Analysis of Construction Company and finally concludes
that, project provides detail of financial analysis of effective utilization of inventory models in material management for cost
reduction.

(Harsh Soni, 2017) This literature deals with identification of selective inventory control technique and to maintain sufficient
stock of raw material during the period of short supply, to protect inventory against deterioration and control investment in
inventories and to keep it at an optimum level an inventory control techniques such as ABC, SDE and EOQ analysis and concluded
that SDE analysis in very useful in the context of present day scarcity of materials. ABC analysis and EOQ which surely will
help in reduction of cost on construction sites due to Wastage control, Right incoming quantity, Materials handling, Strict control,
Frequent ordering, Accurate forecast, Reduce lead time.

(Sayali Shet, 2017) This literature deals with the ABC, SDE & VED analysis for the inventory control and concludes that The
A.B.C analysis only gives idea about inventory value .A.B.C analysis does not give the importance of material. VED analysis
gives importance of material for each activity. SDE analysis gives availability of material in market depending upon season.

(Miss. Monika Ramdas Nanaware, 2017) This literature deals with ABC and EOQ analysis and concludes that Inventory
management can be done effectively by using ABC analysis and EOQ. The implementation of ABC analysis gives the
distribution of A, B, C type materials. This distribution of materials gives the economic importance of materials. EOQ gives the
results of right quantity of orders at right time. It avoids the delays in material supply and also avoids wastage of materials. From
analysis it can be conclude that if there is saving of materials by implementing ABC analysis and EOQ methods to project then
this will give huge money savings in large projects. Inventory control system minimizes the wastage of materials which
ultimately saves the cost of a project. (Arpit Bhadiyadra, 2018) In this literature author have used ABC and HML analysis for
the inventory analysis of a construction firm for a commercial construction project and concluded that a company or firm can
reduce the cost of its project with the help of material management by identifying materials which effect the total cost of the
project if not properly managed. From this study we found that this methods could help the company to manage the most valuable
material and the various price varied materials and can maintain the optimal stock and investment on this materials. It will also
help in the planning and purchasing process of the material.

(Sayali Sudhir Mahagaonkar, 2018) ABC analysis is used in this work for material management. In this work a case study of a
Multi-storeyed building is considered with an aim of minimising wastage of materials by efficient material management. This
helps to bring economy in construction. Project Management plays a key role in making a project successful. This work mainly
deals with the material management which is an integral part of project management.

(Fjoder Klashanov, 2018) Fuzzy logic provides a highly effective solution to the problem, given fuzzy or incomplete
information. It allows you to design multivariable regulators with Supervisory functions are not based on mathematical methods,
and on the basis of experimental data and experience of other researchers. The verbal description of the construction
management process, including the ambiguity and randomness of both external and internal factors is the block description of
the control system construction. Logical- linguistic model allows to develop and to find the optimum option of the construction
management system.

(P. Sona, 2018) In this work author have considered three different materials such as, copper powder, CFD and barium sulphate
from an automobile industry. Parameters of the materials are not constant always. So manufacturer should take a proper decision
about reorder quantity by reviewing the current amount of existing stock, cost of the material etc. Parameters of input materials
was analysed using the fuzzy TECH5.81d professional edition software to take the inventory decision properly according to the
different levels of input values.

(Prasert Aengchuan, 2013) Fuzzy Inventory System (FIS) model based on continuous inventory control system was proposed
in the previous research for solving inventory lot-sizing problem under uncertain environment. Demand and availability of
supply are inputs and order quantity and reorder point are outputs of the system. Linguistic values are used for both fuzzy inputs
and outputs. Fuzzy rules are constructed according to the historical experience. However, parameters for setting fuzzy rules are
not analysed. So, in this research the suitable range of parameters is determined and recommended for the case study. Five data
sets generated from the distribution of the demand and supply of the case study factory are used to evaluate the FIS model at
difference range of (M+0.1SD) to (M+1.7SD) and compared with the previous research FIS model. The suitable ranges for the
inputs of the FIS model are justified. Moreover, the effect of trend demands for both increase and decrease are also analysed by
trend indexes (0.1, 0.3 and 0.5) with the proposed range. It found that the proposed range can obtain lower cost than the previous
research FIS lot-sizing model about 3%, which is better than conventional approaches. The FIS model is more flexible than the
other models because both order quantity and reorder point are re-evaluated continuously. So, efficient solution can be obtained.
The FIS model allows a user to modify or readjust parameters when the situation changes. So, it is possible to extend learning
methods for adjusting parameters to the FIS model.
(Hamid Reza Rezaei, 2012) This paper combines fuzzy logic and weighted association rule to develop a model for inventory
control. Taking advantage of the strong ability of weighted inter correlation of association rule, we can obtain the core knowledge
from a lot of original data, which greatly enhances the model efficiency. And fuzzy logic can fully approximate any linguistic
relationship, due to existence of imprecise data. This model provides a general framework to predict safety stock and
membership function of each fuzzy variables to be optimized corresponding to data set.

(Wichai Witayakiattilerd, 2016) The innovation appearing in this paper is to present the tactic of conveying the stock selection
to portfolio by using two tactics, fuzzy quantitative analysis and fuzzy hierarchical analysis. The two tactics imply the final
investment weight. Investors can determine their strategies by using the final investment weights. The final investment weights
may be used to select stocks and allocate asset into portfolio. A case study presented in Table 19 shows that if we use the final
investment weights as decision criteria to select stocks into portfolio, stock that has the highest weight is the most interesting and
is chosen first. In contrast, stock that has the lowest weight is the least interesting and is chosen last. However, decision-making
and strategy-planning of each investor may be different and depend on their financial risk tolerance. For example, some
investors whose financial risk tolerance is high level maybe invest in only one stock with the highest final investment weights
while some investors reduce risk by investing in many stocks with high final investment weights. You should keep in your mind
that there is no best tool in the world for financial analysis but you can alter tools that fit for each situation. The purpose of this
research is to construct the tool for financial analysis that may be an alternative for investors. At least, we hope that this research
will help investors to make an appropriate decision.

(Vivek Kumar Srivastava, 2013) In this investigation the Multiple Attribute Decision-Making Problem with preference
information on alternatives shall be investigated. A new approach has been proposed to solve the multiple attribute decision
making problems where the decision-maker gives his preference on alternatives in a fuzzy relation. To reflect the decision
makers preference information, an optimization model is constructed to assess the attributed weights and then to select the most
desirable alternatives. And I shall consider a multi-level linear programming problem and apply Fuzzy Mathematical
Programming (FMP) approach to obtain the solution of the system. The FMP method for the minimization of the objectives using
linear membership functions shall be the basis of our study.

(Darshan Kumar, 2013) In this paper, author have develop a model for supplier evaluation through data collection from survey of
66 Indian textile organizations. A questionnaire has been used to determine the factors which these organizations consider while
evaluating a particular supplier. A multi-input single-output (MISO) Mamdani fuzzy inference system has been proposed for
supplier evaluation taking the nine most important factors, as opined by the respondents. As the literature reveals, no logical
method is being employed at present to continuously evaluate a supplier in the industry under study. Considering the extent of
the production cost that involves raw material costs, the proposed system can be very helpful to the companies for making
decisions about supplier evaluation. Apart from supplier evaluation, the proposed methodology can be translated to model the
decision-making processes of facilities and service purchases by just changing the variables. As illustrated in the above sections,
the proposed system is very simple for engineers/managers of the related fields to use, and they will find implementation of this
technique very easy and suitable.

III. CONCLUSION

Since the study of these literature reviews it is conformed that using inventory analysis techniques will helps us in reducing the
waste of material and lower down the total cost by an average of 40 – 60 % and have found some new factors that may affect the
material cost which are; inventory premises, freight charges, and materials handling equipment, Transportation and material cost.
But when it comes to decision making for the selection of inventory management technique where one uses the Boolean logic for
selection which is beneficial but not in all aspects where the use of Fuzzy logic will allows us to choose the right choice with it’s
different theories. Now where Boolean logic have only two parameters (TRUE or FALSE) when Fuzzy logic have more
parameters (Totally True, Partially True, Partially False or Totally False) which allows us to choose our option from wide range
of parameters.
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