When should a builder order long-lead materials once holding them costs money?
research/house-orderlead
When should a builder order long-lead materials once holding them costs money? Extends house-schedule: ordering ~2 lead times ahead of plan cuts the build from 214 to 182 working days and total cost from 3.34% to 2.91% of price; ordering everything on day 0 saves more days but costs more (4.00%).
What it found
Extends the house-schedule Monte Carlo (3,000 builds per row) with the cost of material that arrives before it is used: a financed deposit, storage and handling, and damage or theft. Ordering each material about two lead times before its planned start cuts the build from 214 to 182 working days and interest plus holding cost from 3.34% to 2.91% of price. Ordering everything on day 0 saves more days (151) but costs 4.00%, worse than the baseline. The cheapest order time moves from three lead times (free to hold) to 1.5 (expensive to hold). Stylised: every cost is assumed and the order plan is fixed from the baseline schedule.
A figure from its own output
Paper, code and results
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Produced with AI assistance (Claude). Results are from the code in this repository and are simulated or stylised unless the abstract says otherwise; nothing here implies affiliation with or endorsement by any lab, researcher or company cited. MIT licensed.