International Journal of Industrial Engineering & Production Research

The construction industry is one of the high-demand industries related to business and projects. Robust materials management that is subject to inventory management is the highest factor to enhance the Supply chain management (SCM) performance that will indicate the project's success within the complexity of the project. This research aims to measure the performance of Supply Chain Management at PT Cahaya Amal Taqwa as a new housing developer who focuses on subsidized housing that faces a project delay because they have less data documentation and analysis from previous projects. The issue is most newcomer construction projects never analyze and measure their supply chain management (SCM) which leads them to confusion about the project improvement. The research uses the Supply Chain Operational Reference (SCOR) method to know how much inventory management impacts supply chain management performance and how it overcomes the issues.   Most studies only measure the SCM performance and show which aspects need to be developed without any scheme of solution offered. This research presents the scheme of improvement for the inventory model and provides forecasting for the whole SCM performance after the implementation of a new model of inventory management. The findings confirm that inventory management significantly impacts the whole supply chain management performance in the construction industry. The development of a solution system brought comprehensive results by classifying KPIs for inventory management and an interdependence network was created to define the new model of inventory system for the solution. This research proves that improving an aspect will impact significantly the whole SCM performance instead of improving KPIs one by one.