The Product Safety Stock Prediction Method Based on Artificial Neural Network

Abstract

When selling products, in order to prevent products stockout due to the uncertainty events, enterprises usually reserves a certain amount of safety stock. The amount of safety stock is directly related to inventory costs. How to calculate the amount of safety stock, the traditional method of using formulas to calculate directly has many limitations. This paper used artificial neural network to predict the amount of safety stock. The experimental result shows high accuracy.