Safety Stock Management Regulations

  1. Purpose To establish safety stock, optimize inventory turnover period, and reduce inventory to the minimum level.

  2. Applicability Applicable to the raw material and finished goods warehouses of the company.

  3. Responsibilities 3.1 The Sales Department is responsible for determining the safety stock standards based on product sales conditions. 3.2 Procurement is responsible for determining the inventory standards for raw materials based on finished goods inventory and the maximum production capacity of the Production Department. 3.3 The Warehouse is responsible for the management of inventory items, ensuring first-in, first-out (FIFO), and guaranteeing the quality of inventory products.

  4. Safety Stock Control 4.1 Period: In January of each year, adjust the minimum and maximum inventory levels of raw materials and finished goods based on the actual sales conditions and production capacity from October to December of the previous year. In April of each year, adjust the minimum and maximum inventory levels of raw materials and finished goods based on the actual sales conditions and production capacity from January to March of the current year. In July of each year, adjust the minimum and maximum inventory levels of raw materials and finished goods based on the actual sales conditions and production capacity from April to June of the current year. In October of each year, adjust the minimum and maximum inventory levels of raw materials and finished goods based on the actual sales conditions and production capacity from July to September of the current year. 4.2 In case of significant changes in sales conditions, trial production of new products, or elimination of old products, temporary safety stock shall be established. 4.3 Method for determining safety stock: Minimum inventory level = Average quarterly sales quantity × 1.2 safety factor Maximum inventory level = Minimum inventory level (based on A, B, C categories) × 1.5-2.5 Note: Category A (×1.5): Sufficient raw materials, short production cycle, convenient operation, low complexity factor, high demand. Category B (×2): Basic availability of raw materials, average production cycle, average operation, medium complexity factor, moderate demand. Category C (×2.5): Raw material shortage, long production cycle, difficult operation, high complexity factor, low demand.

  5. Relevant Records QR8.5.4-01 Safety Stock of Raw Materials QR8.5.4-07 Safety Stock of Finished Goods

你是公司一名专业的译员请用专业正式正确的英语表达翻译以下内容并按照原文格式排版。安全库存管理规定 1目的 建立安全库存优化库存周转期减少库存量至最低。 2适用范围 适用于企业的原材料和成品仓库。 3职责 31 销售部负责根据产品销售情况制定安全库存标准; 32采购根据成品库存量、生产部的最大产能制定原材料的库存标准。 33 仓库负责库存物品的管理确保先进先出保证库存产品的质量。 4. 安全库存控制

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