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The Order Up-To Inventory Model

1 The Order Up-To Inventory Model Inventory Control Best Order Up To Level Best Service Level Impact of Lead Time11. Medtronic s InSync Pacemaker Model 7272. Implanted in a patient after a cardiac surgery. One distribution center (DC) in Mounds View, Minnesota. About 500 sales territories. Majority of FGI is held by sales representatives. Consider Susan Magnotto s territory in Madison, and Inventory at the DCAvg. monthly demand = 349 Std. Dev. of monthly demand = weekly demand = 349 = deviation of weekly demand = (Assume weeks per month and independent weekly demands.) 0100200300400500600700 JanFebMarAprMayJunJulAugSepOctNovDecMont hUnitsMonthly implants (columns) and end of month Inventory (line)3 Demand and Inventory in Susan s TerritoryTotal annual demand = 75 Average daily demand = units (75/260), assuming 5 days per demand distribution works better for slow moving items0246810121416 JanFebMarApr

1 The Order Up-To Inventory Model Inventory Control Best Order Up‐To Level Best Service Level Impact of Lead Time 1 1. Medtronic’s InSync Pacemaker Model 7272. Implanted in a patient after a cardiac surgery. One distribution center (DC) in Mounds View, Minnesota.

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