PRODUCTION PLANNING MODELS WITH PRODUCTIVITY AND FINANCIAL OBJECTIVE FUNCTIONS IN SEMICONDUCTOR MANUFACTURING

In the semiconductor manufacturing literature, production planning models mainly aim at minimizing total production, inventory and backlog costs. Solving these models may lead to a poor utilization of the production capacity when there are not enough demands. In this paper, after presenting a first generic linear programming model with fixed lead times when total costs are minimized, a model where productivity is maximized is introduced. Then, a model is proposed that includes the maximization of profit and considers the net present value of the financial objective function. These models are then compared using a data set from the literature. The numerical results show that, although the model with productivity maximization is performing as expected, the model with profit maximization is more relevant since it also helps to increase productivity. The impact of the actualization rate is analyzed, and also the limitations of the production of some products.