Walmart Inc.
SYSTEMS AND METHODS FOR SAFETY STOCK OPTIMIZATION FOR PRODUCTS STOCKED AT RETAIL FACILITIES

Abstract:

Systems and methods for calculating the safety stock of a product at a retail facility to reduce out-of-stock events and excess inventory build-up for the product at the retail facility include at least one electronic database configured to store electronic data that comprises historical lead time data, historical demand forecast data, historical sales data, and order-related data associated with the product. A computing device includes a demand variability generator configured to analyze the electronic data obtained from the electronic database to determine an estimated demand variability value with respect to the product, a lead time variability generator configured to analyze the electronic data obtained from the electronic database to determine an estimated actual lead time value with respect to the product; and a safety stock generator configured to correlate the estimated demand variability value and the estimated actual lead time value to determine an estimated safety stock value with respect to the product at the retail facility.