IDEAL JOBSITE INVENTORY LEVELS
The result of this research is that inventory levels within the electrical construction industry have remained very high and very costly; prior research has shown that approximately 40 percent of an electrician's time is spent handling material. Without adequate training, the field supervision maintains an inventory level that provides a personal degree of comfort often based on past experience with the vendor or previous experience with material shortages from underestimation of the actual consumption rate. In fact, it is very common practice for an electricial contractor to purchase and ship as much as 80 percent of the anticipated material to a jobsite at the time of initial mobilization. By reducing the material inventory on the jobsite, a contractor can recover some of the 40 percent of labor that is spent handling material, reduce the risk associated with damage or injury, and reduce their cash conversion time while still maintaining adequate inventory levels to avoid starving the labor. The hypothesis of this research project is that there exists an ideal inventory level that maximizes labor productivity while minimizing material and labor cost.
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