Abstract The proficient planning of materials procurement & storage on construction sites might lead to important developments in project profitability &construction productivity. The current surveys concentrate on storage layout &material procurement as 2 discrete planning tasks without deliberating their mutual & difficult interdependencies. The current work reports the improvement of novel optimization method for construction logistics design, which will be able of concurrently optimizing & integrating the difficult planning decisions of material storage & procurement on construction sites. The method uses EOQ to diminish construction logistics prices, which cover stock-out, material ordering, financing, and prices of layout. The method includes newly established procedures to assessment influence of probable material shortages on-site due to late delivery on stock-out costs &project delays.