Understanding The Factors and Perspectives Influencing Safety Stock Prediction: A Systematic Literature Review on Inventory Management

Stock inventory management is faced with planning and controlling supply chain activities. Optimal inventory is affected by some factors of supply chain process from manufacturer and the distribution handling toward customers. In its development, the inventory management becomes more complex, the availability of a product is increasingly varied and the demand is fluctuating which causing inventory management needs to optimize. needs planning approach has been conducted with qualitative and quantitative methods. This paper aims to gain insight into prediction safety stock and parameter used in inventory management. Research studies are conducted with relevant literature in the scope of inventory management. The topic of the research discusses inventory management with constant popularity in the last 5 years with varied approach and methods. We search in the database of IEEE Xplore, Scopus digital library, and reputable journal. After the searching process, we found 23 publications which are relevant with the purpose of this research. The main conclusion of this article is that safety stock increases the effectiveness of inventory management. Minimizing the loss impact of product, reducing the storage cost and maintain customer satisfaction. While another variable which affects safety stock is the lead time of supply chain. Therefore, this factor can be used as the main element in calculating safety stock.