Supply chain management (SCM) is defined as
a set of approaches used to efficiently integrate suppliers, manufacturers,
warehouses, and stores so that products are produced and distributed at the
right quantities, to the right locations, and at the right time, in order to minimize
overall costs while meeting service level requirements. SCM also pertains to
the set of actions and decisions that attempt to synchronize demand and supply
with in-process inventories, in order to ensure on-time delivery of product
commitments to customers, and optimize the overall manufacturing operations
from start to end.
In this paper we develop a framework for the
key components of the supply chain of the semiconductor manufacturing process,
including front-end (fab) operations and backend (assembly/test) operations.
Within this framework we consider the conversion from wafers to units. Then we
propose a QP formulation for the profit maximizing objective function with
flexible demand ranges per product and fab capacities. We demonstrate the model
by applying it to a case study that is based on an industry dataset and show
how the solution varies between a local optimization of a single fab (for
minimum wafer cost) and a globally optimal solution for the network.
Our model extends on previous work in
several respects; most notable is the consideration of varying ASP’s of any
product by customer, to reflect segmentation in pricing for differences in
quantities sold. Other extensions pertain to the flexibility in setting the
demand for each product, and in setting capacity across the product mix such
that each fab has a capacity range rather than a fixed number.
On top of these extensions, there are still
opportunities for further work. One that immediately comes to mind is the
consideration of a different objective function to compare with the proposed
quadratic objective function. Other directions include the incorporation of
stock points within the supply chain, as they are used in practice to mitigate
changes in the demand, and the explicit consideration of sub-problems of the SC
problem within the model framework, for example the capacity planning problem
for each of the fabs and/or the AT sites.
Article by Adar A.
Kalir,et al,from 1 Intel Qiriat-Gat and Ben-Gurion University, Beer-Sheva,
Israel
Full access: http://mrw.so/3vdPyG
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| Image by Fisherss Zhang,from Flickr-cc |
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