Factor Analysis of Inventory Management in Thai Construction Industry

The possession of well-organized inventory management is a key factor for a construction company to maintain its competence among competitors. Efficient inventory management leads to a higher-quality financial performance of construction projects as inventory-related cost can account for 60-65% of total construction cost. The purpose of this research study is to examine key factors affecting inventory management in Thai construction industry. A questionnaire survey was developed to gather data for an exploratory factor analysis (EFA). The results extract four key factors affecting inventory management, including `performance', `cost', `strategy' and `inventory policy', with a total of 15 associated items. The four key factors provide better understanding of inventory management in Thai construction industry.