Creative Commons License

Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Date of Graduation

Spring 2013

Document Type


Degree Name

Master of Science (MS)


Department of Integrated Science and Technology


The EPC contracting mode (Engineering, Procurement and Construction) has been broadly applied in construction projects, particularly, at the international level. However, the procurement process has been scarcely in literature. The purpose of this thesis is to research the procurement processes of different types of products—ETO (Engineer to order), MTO (Make to order), and MTS (make to stock)—in supply chain for a real international EPC cement project in Ethiopia. The procurement processes of steel bar (MTS), precast steel structure (MTO), and vertical mill (ETO) for the “Raw Meal Grinding and Exhaust Gas Treat,” one of the cement plant workshops, have been analyzed as a case study. Three levels’ of SCOR models (Supply Chain Operation References) for the three products are established; the inventory costs were selected as the performance measure for the supply chain. The SCOR models helped in finding the locations where the inventory costs were incurred, and helped in identifying the factors that may influence the inventory cost. In addition, based on the SCOR models, a basic simulation model has been set up, MonteCarlito simulation, and was applied to the precast steel structure based on the inventory cost. A sensitivity analysis was conducted to evaluate the impacts of the pre-delivery waiting time, the delivery time, and the construction time on the total inventory cost. The results revealed that the construction time has the highest impact. Moreover, high inventory cost resulted from poor management relationship with the import agent company. Four key elements were identified which leading to such a relationship: trust, collaboration communication, and problem solving. A questionnaire about these four key elements was developed and responses analyzed (38 responses). Ten suggestions were made to improve the relationship management with suppliers.