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v 1 – Introduction 1 2 Literature Review 3 2.1 Total Cost of Ownership and Lead-Time 3 2.2 Demand and Lead-Time Variability Studies 4 2.3 Resilience, Flexibility and Lengthening Supply Chain Lead-Times 7 2.4 Optimization Studies under Demand and Lead-Time Variability 8 2.5 Ties to Strategic Sourcing 9 2.6 Summary of Articles 10 2.7 Summary of Literature Search Findings 11 3 The Simulation Model 13 3.1 – Bill of Materials 13 3.2 Capacity and Daily Regeneration 14 3.3 – Backorders 14 3.4 Demand Distribution 15 3.5 Forecast Methodology 16 3.6 Lead-Time Distribution 17 3.7 Steady State 20 3.8 Safety Stock 21 3.9 Batch Size 21 3.10 Final Experimental Models 21 4 – Simulation Results and Findings 23 4.1 – Graphical Analysis 23 4.2 – Discussion of Results 26 5 Analysis of Backorders 28 5.1 Lead-Time Impact on End Products and Components 28 5.2 Demand Variance Impact on End Products Across Safety Stock Levels 28 5.3 Demand Variance Impact on Components 29

Analyzing impacts on backorders and ending inventory in MRP due to changes in lead-time, demand variability and safety stock levels