LOKI

Challenge

Studies of material consumption in the construction industry show that far more resources are spent on purchasing and storage than are needed. This can be seen from the sizes and contents of the warehouses held by companies that rent out machinery and other equipment to contractors, among other indicators. NetHire A/S, which is behind Denmark’s largest platform for equipment management and rental, has collaborated with DTU to perform analyses across hundreds of locations, spanning multiple types of tools. These analyses show that on average, warehouse inventories can be reduced by 60%, and by as much as 80% in some instances!

Solution idea

The purpose of this project is to help rental services in the construction industry reduce their inventories, such that excess equipment can be used where it is needed and purchases of new equipment can be reduced. To achieve this, we will develop an algorithm that agilely and automatically calculates the required amounts of all item types a rental service stocks.

Development of an algorithm that agilely and automatically calculates the required amounts of all item types a rental service stocks. The algorithm, which is based on Net-Hire’s platform, will calculate the minimum inventory level that exactly meets the service level that a rental service wishes to offer its customers. The platform can be extended to (e.g.) the offshore industry.

Project deliverables

In general, the project will help to prepare data sources and clarify the application of the algorithm, including by defining mathematical models, preparing inventory calculations, and analysing simulations.

This project is financed by Energy Cluster Denmark’s Technology, Innovation, Environment, and Energy (TIME, from the Danish initials) support programme. It offers three years of support to allow small- and medium-sized businesses to collaboratively develop innovative electronic products focused on energy optimisation. The TIME project is supported by the European Regional Development Fund.