Abstract | ||
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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 |
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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 |
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Tsan-Sheng Ng | 1 | 50 | 8.26 |
Yang Sun | 2 | 46 | 15.21 |
John W. Fowler | 3 | 1185 | 129.85 |