Network-flows optimization in the semiconductor manufacturing supply chain

The semiconductor industry focuses on the integration and coordination of resources either inside or outside an enterprise, and in the same or different countries. The integration of material-, cash-, and information-flows is complex. The semiconductor industry is one of the most complex manufacturing and logistic environments to plan and control. Hence, the development of a decision model incorporating electronic information exchange is required. Based on the Advanced Planning Systems (APS) framework a hybrid solution model is proposed, which implements the concepts of the Enterprise Resource Planning (ERP) system. Mathematical models, a heuristic method, and simulation models, are integrated, and the model considers the logistics of the semiconductor industry primarily through demand planning, master planning, and production planning. Master planning is central to the process. The inbound and final assembly logistics of the semiconductor industry can then be organized and integrated. The proposed hybrid solution model supports the planning tasks, which decide the optimal product allocation ratio and the allocation ratio from wafer fabrication to final assembly and testing, and is validated by a set of numerical data.