Integrated Semiconductor Supply Chain Production Planning

In this paper, we propose a deterministic mixed-integer programming model to schedule weekly production quantities for semiconductor manufacturing in order to meet forecasted demand over a six-month planning horizon. The model considers facility capacities, facility qualifying, limits on the number of facilities to use, and unit-level minimum inventory requirements. Model validity is demonstrated with a simple test case based on an industry dataset. A case study is then presented using actual industry data. Minimum inventory requirement levels are varied and compared to results obtained from traditional safety stock policies.