Production Water Inventory Control for Ready Mix Concrete to Minimize Production and Delivery Delays
Abstract
General Background Ready-mix concrete manufacturing relies heavily on continuous material flows to fulfill construction project demands. Specific Background Water serves as the primary mixing medium for concrete products, requiring precise supply chain coordination to prevent operational stoppage. Knowledge Gap While inventory management models are frequently applied to general manufacturing raw materials, studies calculating optimal water procurement parameters specifically for concrete batching plants remain highly limited. Aims This study determines the optimal order quantity, safety stock, and reorder point for production water to prevent material shortages and distribution delays. Results Based on consumption data from May to July, the Economic Order Quantity method establishes an optimal purchase volume of 69,288 liters per order. Furthermore, statistical analysis of daily demand fluctuations dictates a necessary safety stock of 14,580.68 liters. Consequently, factoring in a one-day procurement lead time, the reorder point is precisely set at 27,916.19 liters. Novelty The research formulates a specific mathematical inventory framework, transitioning water procurement from estimation-based ordering to a data-driven replenishment strategy within the ready-mix concrete industry. Implications Adopting these calculated parameters minimizes stockout risks, secures continuous mixing operations, and ensures punctual concrete deliveries to customers. Highlights: Transitioning water procurement from estimation to calculated models resolves continuous stockout and distribution delay issues. The Economic Order Quantity calculation dictates an optimal purchasing volume of 69,288 liters per transaction. Establishing a 27,916.19-liter reorder point and a 14,580.68-liter safety stock secures production during one-day lead times. Keywords: Economic Order Quantity, Reorder Point, Safety Stock, Ready Mix Concrete, Inventory Control