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|Title:||Semiconductor lot allocation using robust optimization|
|Authors:||Ng, T.S. |
Semiconductor supply chain
|Citation:||Ng, T.S., Sun, Y., Fowler, J. (2010-09-16). Semiconductor lot allocation using robust optimization. European Journal of Operational Research 205 (3) : 557-570. ScholarBank@NUS Repository.|
|Abstract:||In this work, the problem of allocating a set of production lots to satisfy customer orders is considered. This research is of relevance to lot-to-order matching problems in semiconductor supply chain settings. We consider that lot-splitting is not allowed during the allocation process due to standard practices. Furthermore, lot-sizes are regarded as uncertain planning data when making the allocation decisions due to potential yield loss. In order to minimize the total penalties of demand un-fulfillment and over-fulfillment, a robust mixed-integer optimization approach is adopted to model is proposed the problem of allocating a set of work-in-process lots to customer orders, where lot-sizes are modeled using ellipsoidal uncertainty sets. To solve the optimization problem efficiently we apply the techniques of branch-and-price and Benders decomposition. The advantages of our model are that it can represent uncertainty in a straightforward manner with little distributional assumptions, and it can produce solutions that effectively hedge against the uncertainty in the lot-sizes using very reasonable amounts of computational effort. © 2010 Elsevier B.V.|
|Source Title:||European Journal of Operational Research|
|Appears in Collections:||Staff Publications|
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