We present a three-stage stochastic programming approach for semiconductor manufacturing planning under demand and production yield uncertainty. The production processes are considered to follow a push policy in the Front-End, and a pull policy in the Back-End; with the Die Bank being the decoupling point. Outsourcing of production and process for each processing stage (e.g., fabrication, sort, assembly, and test) are explicitly modeled in our proposed optimization model. The decisions of the model include the amount of production start and whether or not to subcontract. We apply our model to a test case from a large US-based microelectronic manufacturer. The computational results reveal that the proposed stochastic programming model produces solutions that are significantly better than the solutions provided by the deterministic-equivalent expected value approach.
Semiconductor Manufacturing Planning under Demand, Production and Process Yields Uncertainties
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