A dynamic model of the safety stock under VMI

Author

Li, Qing-yuan ; Li, Su-jian

Author_Institution

Mech. Eng. Sch., Univ. of Sci. & Technol. Beijing, Beijing, China

Volume

3

fYear

2009

fDate

12-15 July 2009

Firstpage

1304

Lastpage

1308

Abstract

The dynamic management of the safety stock is a new research field. The goal of this management is to cut down the cost in storage and holding of the products and to have the supply chain more efficient and more profitable. Researching on the VMI, the notion of dynamic management of the safety stock was put forward. To use the history forecasting and history demand data as the data source, the difference between them reflects the dynamic change of the demand of every distribution period and other factors related. And a way was found to solve the problem of dynamic management of safety stock by means of applying the probability distribution to the research, and further a practical model for safety stock was given. Some examples on the use of this model was given.

Keywords

demand forecasting; safety systems; statistical distributions; stock control; storage; supply chains; demand data history; demand forecasting; probability distribution; product storage; safety stock dynamic management; supply chain; vendor management inventory; Costs; Demand forecasting; Fluctuations; Inventory management; Marketing and sales; Probability distribution; Risk management; Safety; Technology forecasting; Uncertainty; Dynamic model; Forecasting; Probability distribution; Safety stock; VMI;

fLanguage

English

Publisher

ieee

Conference_Titel

Machine Learning and Cybernetics, 2009 International Conference on

Conference_Location

Baoding

Print_ISBN

978-1-4244-3702-3

Electronic_ISBN

978-1-4244-3703-0

Type

conf

DOI

10.1109/ICMLC.2009.5212263

Filename

5212263