Optimizing the delivery schedule of equipment in a project environment considering resource leveling of storage space and its constraint: a case study

Purpose - The present work seeks to determine the optimal delivery schedule of equipment at a project site in the backdrop of limited storage space, at a minimum cost, and without disturbing the overall project schedule. In addition, the optimized delivery schedule helps in minimizing the fluctuating requirements of space at the project site across the entire project lifespan. Design/methodology/approach - The study is carried out at a Steel plant operating in a constrained space but undergoing a production capacity expansion. The problem motivated us to explore the possibility of postponing the delivery dates of certain equipment closer to the erection dates without compromising on the project schedule. Given the versatility of linear programming models in dealing with such schedule optimization problems, the authors formulated the above problem as a Zero-One Integer Linear Programming problem. Findings - The model is implemented for all the new equipment arriving for two major units – the Hot Strip Mill (HSM) and the Blast Furnace (BF). It generates an optimized delivery schedule by delaying the delivery of some equipment by a certain number of periods, without compromising the overall project schedule and at a minimum storage cost. The average space utilization increases by 25.85 and 14.79% in HSM and BF units respectively. The fluctuations in space requirements are reduced substantially in both units. Originality/value - The study shows a timeline in the form of a Gantt chart for the delivery of equipment, storage of equipment across different periods, and the number of periods for which the delivery of certain equipment needs to be postponed. The study uses linearly increasing storage costs with the increase in the number of periods for storage of the equipment in the temporary shed. Highlights - Determined the optimal delivery schedule of the equipment in a project environment in the backdrop of limited storage space in the project site.Formulated the above problem as a Zero-One Integer Linear Programming (ILP) problem.The average space utilization has increased by 25.85 and 14.79% in HSM and BF units respectively.The optimized delivery schedule helps in reducing the fluctuations in space requirements substantially across the entire lifespan of the project.The timeline of delivery of equipment, storage of equipment across different periods and periods of postponement of the equipment are shown in the form of a Gantt Chart.