ABSTRACT
The ITO Model The Input-Transformation-Output (ITO) Model is the DNA of the supply chain. The supply chain is composed of a series of linked entities, including manufacturing and service businesses. This chapter describes the ITO Model and how these elements can be linked together to become a functioning supply chain. The following topics are discussed here:
◾ Types of models ◾ Uses and benefits of these models ◾ The basic ITO Model ◾ Extensions to the basic model ◾ The concepts of open and closed systems ◾ Supply chain formation ◾ The ITO Model and its application to management functions
A single ITO module is equivalent to a transaction, such as the receipt of an order from a customer. A linkage of several ITO modules is a process, such as the complete handling of an order from receipt to delivery. A supply chain involves the linking of a process from one company to an input or output process in another company. To help us understand the ITO Model, it would be beneficial to examine why models are used in the first place. Managerial Comment 3.1 by Martin Starr begins our discussion on why models are useful.
