Abstract
Since SCM isn't developed in construction industry, the bullwhip effect that is caused by decentralized demand information and lead time brings about overstock of materials in the supply chain. In order to evaluate quantitative effect of inventory reduction by SCM in construction industry, this paper constructs an inventory control model by combining the inventory policy with the theory of bullwhip effect in a supply chain under the leadership of general construction. The simulation analysis shows that SCM system achieves the reduction of inventory over 30% less than the system without SCM.
