Inventory Management for Transmission Line Projects

Abstract

In the developing countries, the industrial development plays the key role for enhancing growth of the nation and the industries have basic necessity of continuous and day by day increasing demand for electricity. The transmission lines have the most important responsibility for the effective transmission of electricity, i.e. to transmit the electricity from the generating station to the load centres. In the recent days, the physical storage and distribution have vital roles to play for the organization. The importance of the management of stores for inventory management is related to eradicate the unused, surplus or leftover materials that add cost to the supply chain so as to cultivating the efficiency and the effectiveness of the store functions at the same time intends to maximize those areas, which can add value. Inventory management is complex and crucial task of any transmission line project. At present, the organisations normally set inventory targets using thumb rules or single-stage calculations. Thumb rules involve to set the number of days for supply as the coverage target. Single-stage calculations include the single item in the single location and thereby calculating the amount of inventory needed to satisfy or fulfil the demand. This study is trying to implement statistical inventory management model in the construction of transmission line projects. In this study, we will try to optimize the inventory level of a transmission line project to reduce the overall cost of project by reducing the excess cost associated with excess inventory. This paper is anticipated to help the decision-makers by enhancing the current performance of the store management in the construction projects by finding the economic order quantity to minimize the total inventory cost. © 2021, Springer Nature Singapore Pte Ltd.