New supply chain-concept based on coupling point inventory planning

We propose a new supply chain concept based on coupling point inventory planning method. This method is used for repetitive products at the coupling point (CP), and is combined with the margin stock ratio. This method plans the formulaic necessary inventory under the demand fluctuation, and calculates the re-order quantity. The formulaic necessary inventory is planned by the lead-time of the supply chain process, planning cycle, average demand quantity and its standard deviation. The re-order quantity is calculated by the difference of the formulaic necessary inventory and the measured actual stock. As a result, the total inventory of supply chain process becomes flat by formulaic necessary inventory, and the capacity/load of the upstream company becomes flat by the margin stock ratio, and the out-of-stock situation of the downstream company decreases by the necessary inventory including safety stock.