Title: Physical distribution costs in construction supply chains: a systems approach

Authors: Hans Voordijk

Addresses: Faculty of Engineering Technology, Department of Construction Management and Engineering, University of Twente, P.O. Box 217, 7500 AE Enschede, The Netherlands

Abstract: The objective of this study is to provide insights into the trade-offs of physical distribution cost patterns in construction supply chains by modelling and measuring these costs. The model of the physical distribution system consists of the following (cost) elements: inventory, transport, handling, and warehousing. It is applied in the supply chain of insulation materials. It is concluded that the model gives a valid explanation for the major cost trade-offs in the supply chain analysed. By using this model, firms involved in the physical distribution of building materials in construction supply chains may find the optimal distribution strategy.

Keywords: physical distribution; building materials; cost trade-offs; construction supply chains; supply chain management; SCM; modelling; inventory costs; transport costs; handling costs; warehousing costs; insulation materials.

DOI: 10.1504/IJLSM.2010.035632

International Journal of Logistics Systems and Management, 2010 Vol.7 No.4, pp.456 - 471

Published online: 01 Oct 2010 *

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