Abstract
In the construction industry, delivery time of building materials are often delayed according to the pace of construction progress. This causes that extra inventories in building material manufacturers. To minimize the inventories, two production models, i.e., push and pull type production model can be considered widely. When production lead time is short and length of delivery delay is long, pull type may require smaller inventories to keep a certain service level, and push type may require smaller inventories under the condition of longer production lead time and shorter length of delivery delay. To examine performance of average inventory level under different system conditions, factors such as ratio of average length of delivery delay to square root of production lead time, length of production cycle, and coefficient of variation of demand are chosen to define different conditions. As the performance measure, the ratio of push type inventory to pull type inventory (P_<pp>) is used in the comparison of the push and pull type, and a quantitative criterion of production model selection are presented.
