Production smoothing study of the electronic parts and components industry in Taiwan

Chien Wen Shen, Chao Neng Wang

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

The production smoothing models state the phenomenon that manufacturers use inventories to smooth production processes when facing fluctuating demand. This study investigates whether this phenomenon exists for the electronic parts and components industry in Taiwan. We first check which product satisfies the production smoothing hypothesis regarding the variance of production and sales. For those products satisfying the hypothesis, we further analyze their parameter estimations like speed of inventory adjustment and degree of production smoothing in production smoothing models . According to our analysis results, there are 12 of 15 products supporting the production smoothing hypothesis. However, only foundry wafer and LED chip have their adjustment and smoothing coefficients satisfying the corresponding model assumptions. This empirical study shows a mixed result on the practicability of production smoothing models for the electronic parts and components industry.

Original languageEnglish
Title of host publicationIMECS 2007 - International MultiConference of Engineers and Computer Scientists 2007
Pages2032-2037
Number of pages6
StatePublished - 2007
EventInternational MultiConference of Engineers and Computer Scientists 2007, IMECS 2007 - Kowloon, Hong Kong
Duration: 21 Mar 200723 Mar 2007

Publication series

NameLecture Notes in Engineering and Computer Science
Volume2
ISSN (Print)2078-0958

Conference

ConferenceInternational MultiConference of Engineers and Computer Scientists 2007, IMECS 2007
Country/TerritoryHong Kong
CityKowloon
Period21/03/0723/03/07

Keywords

  • Inventory models
  • Production smoothing

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