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Wood-based construction project supplier selection under uncertain starting date

Author

Listed:
  • Azadeh Mobtaker
  • Anjali Awasthi
  • Satyaveer S. Chauhan
  • Sophie D'Amours

Abstract

There is a growing interest in supply management systems in today's competitive business environment. Importance of implementing supply management systems especially in home construction industry is due to the fact that several risks arising from different sources can adversely affect the project financially or its timely completion. Some risks of construction projects are out of managers' control while other risks such as supply related ones can usually be controlled and directed by effective managerial tactics. In this paper, we address the supplier selection problem (SSP) in wood-based construction industry (housing projects) in the presence of project commencement uncertainties. Based on the suppliers' (vendors') reaction towards these uncertainties in the delivery time, we explore two cases: (a) supplier selection with buyer penalty for a delay (SSPD) where the price of product increases with the delay; (b) supplier selection with quantity reduction for a buyer delay (SSQRD). Three heuristic-based supplier selection approaches are proposed and tested on randomly generated data sets. The proposed approaches show promising results.

Suggested Citation

  • Azadeh Mobtaker & Anjali Awasthi & Satyaveer S. Chauhan & Sophie D'Amours, 2018. "Wood-based construction project supplier selection under uncertain starting date," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 30(4), pages 480-504.
    • Handle: RePEc:ids:ijsoma:v:30:y:2018:i:4:p:480-504
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