Study of New Material Management System in Construction Sector: Comparative Analysis of Inventory Systems in the Construction Sector

Abstract

Construction is a major component, which forms 45 to 50 of the country’s developmentactivity. Construction materials and components contribute about 50 to 60 of the total value ofconstruction. There will be some difficulty in defining construction materials. Some are exclusively usedin construction and others in other industries also. Some form heavy percentage and some very minorpercentage, but critical in their nature and affect the construction activity.The management and control of inventory is a problem common to all organizations in any sector of theeconomy. The wealth of shareholders also lies in the warehouse. More than 60 of working capital isnormally being invested in the inventory. There can be disadvantages in holding either too much or toolittle inventory. Therefore inventory management is primarily concerned with obtaining correct balancebetween two extremes.Inventory management involves the development and administration of policies, system and procedureswhich will minimizes total cost relative to inventory decisions and related functions such as customerservice requirement, production scheduling, purchasing etc.., Viewed in that perspective, inventorymanagement has a broad scope and affects a great or number of activities in an Organization. For thepast few years the concept of inventory system has gained more importance in our country. It is due tointense competition in the market, which has forced organizations to search for proper inventory controltechnique to reduce investment in inventories and thereby reducing overall cost.In this study the study of current inventory system is carried out and by combining the differentinventory system the one new inventory system developed .By comparing the cost benefit analysisbetween current inventory control system and new inventory system by taking suitable actual casestudy will be carried out