A Study of TOC Supply Chain Replenishment System in LED Chip Manufacturing Plant

Abstract

The LED chip manufacturing (LED-CM) is an important process in the LED supply chain. To meet the severely competitive pressure these years, the issue of inventory risk for the variety of products is an imperative task for the LED-CM plant. The TOC supply chain replenishment system (TOC-SCRS) is one of the potential solutions to effectively manage inventory in the industry. However, the special features of the unstable production output and a product composed of the chips of different Bins exist in the LED-CM plant. Therefore, the application of TOC-SCRS to the LED-CM plant will encounter the following issues: (1) How to determine the optimal inventory buffer of the chips in the different Bins because a product can be composed of different combination of the chips in the feasible Bins? This paper proposed optimal Bin allocation models to resolve this problem. The optimal Bins inventory combination of a case is further performed via LINGO system and utilized to demonstrate the feasibility of these models. Employing the proposed models will facilitate LED-CM plants to improve their throughput and competitiveness.