Analyzing on Impact Factors of Safety Stock under Random Requirement

In the random requirement environment, safety stock is necessary to maintain a certain customer service level. High safety stock will increase the cost of storage. The influence factors of safety stock are customer service level, the average and standard deviation of lead time, the average and standard deviation of random requirement in lead time. We know that the safety stock relates closely to lead time and random requirement through analyzing the model. The model analysis showed the influence extent of various factors to safety stock : When lead time is fixed, with the increase of customer service level the safety stock increases, the level of safety stock increases sharply while the customer service level is higher than 0.95. When lead time is random, with the average and standard deviation of lead time and the customer service level changing, the safety stock levels change, but the influence ranges are different.