A dynamic model of the safety stock under VMI

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.