Optimization of two-echelon supply chain metering device safety stock placement with uncertain demand

With the gradual development of procurement and supply of power metering devices, competition is fierce, in considering the service foremost, how to reduce the cost of stock has become the focus of attention. In order to overcome the volatility and uncertainty of demand, Grid companies often set up safety stock to ensure the supply resulting in high security stock. Based on the research results of Graves and Willems (2008) and Neale and Willems (2009), this paper constructs a multi-level safety stock allocation model, considering established service level and non-stationary demand. Finally, this paper test the model with the data of Tianjin Power Grid.