Study on safety stock control based on System Dynamics

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.