The purpose of this paper is to assess the impacts of implementing different combinations of various organizational changes on the economics of rebar supply chains in the special conditions of a project environment, where on‐site fabrication of rebar is considered to be more economical than off‐site fabrication practice.
A range of recently published works (2005‐2006) seem to confirm that on‐site fabrication of rebar results in less cost to the contractor compared with off‐site fabrication in a special project environment. However, those analyses did not take into account two main cost components (i.e. storage cost and waiting cost) owing to the lack of such information, and they were based on a number of assumptions regarding current managerial capabilities, which may likely be enhanced through implementing various organizational changes. This study overcame these shortcomings of the recent studies through restoring the formerly developed simulation model to mimic the materials management system actually used by a contractor, and running this system by plugging in realistic input values associated with both those cost components and organizational changes.
The paper reveals that while fabricating rebar off site is more economical than fabricating it on site when the storage and waiting costs were taken into account in the current state of the construction industry, and the lowest total cost of rebar can be achieved by implementing organizational changes in the on‐site fabrication practice.
This paper is a very useful source of information for practitioners and researchers because it indicates that off‐site fabrication practice is only beneficial to builders if they have the ability to exploit it, and if the cultural and business environment enables that exploitation.
