The basic idea introduced in the Economic Order Quantity (EOQ) model is still an important approach in the study and design of models for inventory management. Recently, some research projects have sought to assess the effects and impacts of these inventory models on supply chain performance. In this context, the paper investigates the consequence of supplier delivery lead-time uncertainty on average inventory held and total cost incurred over a period in a company that uses EOQ rules as replenishment policy. Through computer simulation we compare two inventory control models (herein referred to as Q and P "systematic") using a range of values for the supplier's delivery lead time standard deviation. When lead-time is short or close to optimum replenishment interval systematic Q is found to be better. However, for long delivery lead-time the results of both models are nearly equals. Statistical hypothesis tests are applied in the analyses.
Inventory Control; Economic Order Quantity; Continuous Review; Periodic Review; Simulation
