An Order Fulfillment Model With Periodic Review Mechanism in Semiconductor Foundry Plants

Abstract

In today's globalization competition, manufacturing firms are using an order fulfillment system to give available-topromise (ATP) capacity efficiently. An ordinary order fulfillment system will plan capacity based on forecasts and assign ATP quotas to incoming orders. Its basic idea is to enhance capacity utilization and avoid poor customer service. However, in the semiconductor industry, demand is highly volatile, and a maketo-order (MTO) manufacturer often runs the risk of cancelled committed demands. In this research, we propose an integrated order fulfillment model for a MTO semiconductor foundry fab to maximize corporate profit. Specifically, we suggest a periodic allocation review mechanism to reallocate unused ATP quotas. We examine the model performance based on different data sets. Results showed that capacity utilization and profitability are improved substantially with the periodic review mechanism, especially when demand forecast is not reliable.Index Terms-Available-to-promise, linear programming, management information systems, order fulfillment, production management.

Incorporating Pollution Taxes and/or Subsidies into Master Planning in Semiconductor Foundry Plants

“…Ponsignon and Mӧnch (2012) applied heuristic approaches for solving master planning problems by taking demand and capacity constraints into account; Ponsignon and Mӧnch (2014) also devised two heuristic approaches, a genetic algorithm and a rule-based assignment procedure, for master planning in the semiconductor manufacturing and evaluated the performance of them while considering demand and execution uncertainty. Chiang and Hsu (2014) proposed a master planning model within an integrated order fulfillment system for a MTO foundry fab to maximize corporate profit. The above studies, however, concentrated only on capacity allocation and neglected the examination of environmental issues.…”

“…The other input of master planning is from demand planning (e.g., Chiang and Hsu (2014)). The demand forecast of a foundry company is usually based on regional sales data and requires sales managers to visit customers frequently.…”

“…The data was collected from it with some modifications (see also Chiang and Hsu (2014)). We consider three customers, three technology codes at a factory, and a planning horizon of twelve months.…”

“…Constraints (3)-(6) are the same as expressions (2)- (5) of the allocation planning stage in Chiang and Hsu (2014) except that the monthly time buckets are introduced here. Note that Rcfg is used to denote whether or not customer c's products with technology code g can be manufactured at factory f. A customer's product was qualified in a specific plant with requested technology code at the product engineering phase.…”

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“…Ponsignon and Mӧnch (2012) applied heuristic approaches for solving master planning problems by taking demand and capacity constraints into account; Ponsignon and Mӧnch (2014) also devised two heuristic approaches, a genetic algorithm and a rule-based assignment procedure, for master planning in the semiconductor manufacturing and evaluated the performance of them while considering demand and execution uncertainty. Chiang and Hsu (2014) proposed a master planning model within an integrated order fulfillment system for a MTO foundry fab to maximize corporate profit. The above studies, however, concentrated only on capacity allocation and neglected the examination of environmental issues.…”