Title
Semiconductor lot allocation using robust optimization
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.
Year
DOI
Venue
2010
10.1016/j.ejor.2010.01.021
European Journal of Operational Research
Keywords
Field
DocType
Semiconductor supply chain,Lot assignment,Uncertainty modeling,Robust optimization,Generalized Benders,Branch-and-price
Mathematical optimization,Robust optimization,Branch and price,Decision support system,Matching (graph theory),Integer programming,Supply chain,Linear programming,Optimization problem,Mathematics,Operations management
Journal
Volume
Issue
ISSN
205
3
0377-2217
Citations 
PageRank 
References 
7
0.56
9
Authors
3
Name
Order
Citations
PageRank
Tsan-Sheng Ng1508.26
Yang Sun24615.21
John W. Fowler31185129.85