Chapter11TheOrderUp-ToModel.pptVIP

Chapter 11: The Order Up-To Model Medtronic’s InSync pacemaker supply chain and objectives Look at problem from two persopectives … One distribution center (DC) in Mounds View, MN. About 500 sales territories throughout the country. Consider Susan Magnotto’s territory in Madison, Wisconsin. Objective: Because the gross margins are high, develop a system to minimize inventory investment while maintaining a very high service target, e.g., a 99.9% in-stock probability or a 99.9% fill rate. Timing in the order up-to model Time is divided into periods of equal length, e.g., one hour, one month.