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Robust capacity planning in semiconductor manufacturing
Author(s) -
Barahona Francisco,
Bermon Stuart,
Günlük Oktay,
Hood Sarah
Publication year - 2005
Publication title -
naval research logistics (nrl)
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.665
H-Index - 68
eISSN - 1520-6750
pISSN - 0894-069X
DOI - 10.1002/nav.20086
Subject(s) - mathematical optimization , integer programming , stochastic programming , linear programming relaxation , heuristic , computer science , set (abstract data type) , semiconductor device fabrication , capacity planning , linear programming , relaxation (psychology) , operations research , robust optimization , integer (computer science) , mathematics , engineering , psychology , social psychology , wafer , electrical engineering , programming language , operating system
Abstract We present a stochastic programming approach to capacity planning under demand uncertainty in semiconductor manufacturing. Given multiple demand scenarios together with associated probabilities, our aim is to identify a set of tools that is a good compromise for all these scenarios. More precisely, we formulate a mixed‐integer program in which expected value of the unmet demand is minimized subject to capacity and budget constraints. This is a difficult two‐stage stochastic mixed‐integer program which cannot be solved to optimality in a reasonable amount of time. We instead propose a heuristic that can produce near‐optimal solutions. Our heuristic strengthens the linear programming relaxation of the formulation with cutting planes and performs limited enumeration. Analyses of the results in some real‐life situations are also presented. © 2005 Wiley Periodicals, Inc. Naval Research Logistics, 2005.