Title :
Study on safety stock control based on System Dynamics
Author :
Huang Yijun ; Wang Jingjing
Author_Institution :
Beijing Univ. of Posts & Telecommun., Beijing, China
Abstract :
In order to reduce the safety stock level, improve safety inventory control strategy, on the basis of the hypothesis that both the market demand and the mean value and variance of lead time meet normal distribution, the author proposes safety stock control model on the basis method of System Dynamics which consider the cost factor. Vensim for system simulation application to get safety stock level and safety stock accumulation increased with the level of customer service, demand uncertainty and cost curves. In the end, the author puts forward a number of recommendations to optimize safety stock.
Keywords :
costing; customer services; digital simulation; normal distribution; production engineering computing; stock control; Vensim; cost curves; cost factor; customer service; demand uncertainty; lead time mean value; lead time variance; market demand; normal distribution; safety inventory control strategy; safety stock accumulation; safety stock control; safety stock level; system dynamics; system simulation application; Customer services; Educational institutions; Inventory management; Safety; Standards; Supply chains; Uncertainty; System Dynamics; customer service; safety stock; total cost;
Conference_Titel :
Service Systems and Service Management (ICSSSM), 2014 11th International Conference on
Conference_Location :
Beijing
Print_ISBN :
978-1-4799-3133-0
DOI :
10.1109/ICSSSM.2014.6874069
