Application of Assignment Model in Precast Industry for optimizing raw material procurement cost
Abstract
A very large capital cost is required and involved with construction industry, especially when it
is cast-in-situ construction. To minimize this cost, now-a-days an approach of precast construction is
being introduced in industry. In precast construction, various items are being made at the precast
company and then transported to actual work site. The precast industry requires less cost and is a very
fast process of construction. This paper involves quotation of rates of raw materials by different
dealers/suppliers. In order to optimize cost, assignment model is used to allocate suppliers/dealers for
procuring material. The results obtained showed the allotment of materials to dealers in a way to obtain
the optimal procurement cost. This study has given a solution for how to procure raw material and
optimize raw materials procurement cost for any precast industry.