Buffer Stock Setting Model Based On Newsboy Model

With the development of the times and the changes in consumer demand,as well as the gradual saturation of the Internet economy,the main direction of business operations has gradually shifted from creating and satisfying new demands to gaining competitive advantage in competition with companies in the same industry.Consumers' consumption habits are also constantly escalating.In addition to the price and quality of goods and services,they begin to pay more attention to the speed of goods acquisition,product characteristics and other factors,which force the providers of goods and services to make corresponding changes.In the past two years,marketing methods such as social media marketing and small video have gained more and more influence in the consumer group.The life cycle of products is getting shorter.If enterprises want to take first place in this environment,they need to optimize and improve their own production processes and supply chain.To solve the problem of the environment and demand,the first thing companies need to do is to optimize their production and inventory structure.The lower the inventory level and the more agile the production,the smaller the impact and pressure on the enterprise when the environmental demand changes.In order to achieve this goal,the operators and managers of the company should adopt various means to reform and optimize the enterprise from the production mode to the business idea according to various theories.Correspondingly,scholars have also created a variety of theories and specific guidance to manage warehousing and production methods,and created warehouse planning models with different roles in different environments.Make to Availability(MTA)is based on the Theory of Constraint(TOC),which was originally designed to improve the management of the FMCG supply chain.The core idea of the MTA is that each process in the system needs to maintain availability,which can be met in time when the demand arises in the next process,and the inventory used to ensure availability should be kept as small as possible.The key factor "availability" is represented by the inventory buffer,which means "the minimum inventory that should be maintained for the availability of the next process." In a supply chain,the inventory of finished goods that are reflected as members of the supply chain is reflected in the production in-process inventory.As for how to set the inventory buffer and set it,there is a research gap in the relevant research.Research related literature can be known that the current method of inventory buffer calculation is more applicable to only a certain type of enterprise,or roughly set according to management experience,the model is less versatile,and the model improvement effect is not good.Based on the above research background,this paper through the research on MTA production methods and inventory buffer related literature,as well as the comparison of common inventory model literature,finally builds on the basis of the newsboy model,based on the common production data of the enterprise.By comparing with the results of the current mainstream inventory buffer model under the same demand situation,it is found that the inventory buffer setting model based on the newsboy model does not affect the manufacturing company's own shortage rate and delay under the same demand and internal conditions.At the same time,it can reduce the inventory buffer level of manufacturing companies and improve the stability of inventory buffer.For managers,companies can make specific quantitative calculations of the key parameters of inventory buffering in the MTA production model based on this model,and develop production and warehousing plans based on inventory buffers,thus making them better in the enterprise.For the researchers,the model obtained in this paper enriches the inventory buffer model system and provides a new idea and method for calculating the inventory buffer.Moreover,the computational model has certain advantages in variable selection and model effect,and provides a basis and research direction for further constructing a more accurate inventory buffer model.