Optimization Of Raw Material Safety Stock Of H Company Based On The Optimal Customer Service Level

With the rapid development of economic globalization,the diversification and customization of customer consumption demands are gradually deepening.Enterprises are increasingly relying on accurate prediction of demand and supply information to cope with market changes.Many enterprises hope to respond to increasingly differentiated markets through a more flexible supply chain system.Holding safety inventory has become a common method adopted by manufacturing enterprises in China,especially those with flexible supply demand.However,a large amount of safety inventory will increase the operating and management costs of companies,especially for enterprises holding high raw material and finished product inventory.Setting reasonable safety inventory is an important issue for the survival and development of enterprises.By precise optimization of safety inventory and continuous improvement of inventory management systems,enterprises can maintain the continuity and stability of the production process while reducing operational costs.H Company is an agricultural technology enterprise mainly engaged in the production,sales,and research and development of feed products.The enterprise has many problems in the management of raw material safety inventory.Due to the unreasonable setting of raw material safety stock,H Company’s inventory management has problems such as high proportion of raw material and safety stock funds,low inventory turnover rate,and frequent inventory backlog and shortage;To address these issues,the paper first classifies the raw materials of Company H,and then uses the improved "Safety Inventory Optimization Model Based on Optimal Customer Service Level" to optimize the safety inventory of different types of raw materials;After effectiveness evaluation,H Company’s inventory maintenance cost significantly decreased,the proportion of inventory funds and inventory turnover rate significantly improved after the optimization of safety inventory.Based on this,the paper proposes institutional measures to further ensure the continuous optimization of safety inventory.