Journal of the Korea Institute of Building Construction (한국건축시공학회지)

The Korean Institute of Building Construction (한국건축시공학회)
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Profit-oriented Impact Analysis of Demand Management Strategy on Design-Build Firms Using System Dynamics

  • Yoo, Wi-Sung (Construction Management Division, Construction & Economy Research Institute of Korea)
  • Received : 2011.09.05
  • Accepted : 2011.10.31
  • Published : 2012.04.20
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Abstract

In the past, a strategic management of work demands has been increasingly challenged to design-build (DB) firms. Such a management is capable of providing sufficient profitable impact of a project on them. Total project profit is mainly related to actual resources, work completion time, amount of rework, and costs. The degree of recycling work packages in the DB project delivery system is used as a measure of the quality of the performed work. However, there are few models available to evaluate the impact of a demand management strategy on the DB firms and to predict its behavior. We propose a decision-making support model as an aid for assessing the amount of rework and for predicting project profit resulting in a convincible demand management strategy. This model is constructed by using a dynamic feedback approach that can analyze the problems arising in complex managerial systems. For the purpose of illustration, widely acceptable strategies were applied into the model to explore their impacts on the DB firms. The results indicate that the model is helpful for the managers in selecting the most appropriate demand management strategy for successfully achieving their objectives.

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