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Academic Journal of Business & Management, 2020, 2(5); doi: 10.25236/AJBM.2020.020504.

Research on Project Resource Allocation and Lean Procurement Strategy Based on System Dynamics


Ting Chen 1,*, Beiping Tan 2

Corresponding Author:
Ting Chen

1. College of Management, Sichuan University of Science & Engineering, Zigong 643000, China
2. College of Civil Engineering, Sichuan University of Science & Engineering, Zigong 643000, China
*Corresponding Author


Dynamic cost control of construction projects has been a hot topic in the construction industry. Therefore, the idea of lean procurement cost management is combined with dynamic procurement system. First of all, it discusses the characteristics of the relevant elements of the procurement system and analyzes the relationship between variables. Next, make a casual loop diagram of lean procurement system, and introduce two policy variables, namely, the material inventory days and the early-warning value. Finally, the dynamic simulation model of system dynamics is established to simulate and analyze the impact of inventory days and early warning value changes on project cost and construction period, and optimize resource allocation strategy. The model can be used to analyze the impact of different strategies on cost performance and schedule performance, and optimize the procurement plan in theory.


Resource allocation; Lean procurement; System dynamics; Earned value method; Cost control

Cite This Paper

Ting Chen, Beiping Tan. Research on Project Resource Allocation and Lean Procurement Strategy Based on System Dynamics. Academic Journal of Business & Management (2020) Vol. 2, Issue 5: 25-36. https://doi.org/10.25236/AJBM.2020.020504.


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