Universal Journal of Management Vol. 4(11), pp. 639 - 643
DOI: 10.13189/ujm.2016.041106
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A Stochastic Programming Model to Solve the Capacity Expansion Problem Considering Auxiliary Tools: A Semiconductor Foundry Case

Yin-Yann Chen ^*
Department of Industrial Management, National Formosa University, Taiwan

ABSTRACT

This study developed an extended stochastic programming model for the deterministic approach proposed by Chen, Chen and Liou [1]. Capacity planning, which plays a role in production planning, is a challenging problem for the semiconductor manufacturing industry. This study dealt with the uncertain demands of customers for a foundry industry in Taiwan. Through three scenarios, the stochastic programming model was exploited to solve the optimal medium-term capacity planning problem. The data collected from a real wafer foundry in Taiwan were treated as a fundamental scenario to demonstrate the value of the proposed stochastic programming model. The forecast demand variations in other scenarios complied with a normal distribution. The effect of the different probability distributions of demand scenarios on capacity allocation was considered. Changes in the customer order fulfillment rate or capacity utilization rate were analyzed from a series of capacity planning tests with varying demands of the initial customer. Based on different demand scenarios, the numerical results in this study revealed the concordance between the deterministic model and the proposed stochastic programming model. This stochastic programming model also expressed the flexible consideration of auxiliary tools and the increasing number of certified fabrication to the capacity planning problem in the wafer foundry.

KEYWORDS
Stochastic Programming, Capacity Allocation, Semiconductor Industry

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Yin-Yann Chen , "A Stochastic Programming Model to Solve the Capacity Expansion Problem Considering Auxiliary Tools: A Semiconductor Foundry Case," Universal Journal of Management, Vol. 4, No. 11, pp. 639 - 643, 2016. DOI: 10.13189/ujm.2016.041106.

(b). APA Format:
Yin-Yann Chen (2016). A Stochastic Programming Model to Solve the Capacity Expansion Problem Considering Auxiliary Tools: A Semiconductor Foundry Case. Universal Journal of Management, 4(11), 639 - 643. DOI: 10.13189/ujm.2016.041106.