A scenario-based stochastic programming model for the control or dummy wafers downgrading problem

The subject of this paper is to study a realistic planning environment in wafer fabrication for the control or dummy (C/D) wafers problem with uncertain demand. The demand of each product is assumed with a geometric Brownian motion and approximated by a finite discrete set of scenarios. A two‐stage...

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Bibliographic Details
Published in:Applied stochastic models in business and industry Vol. 25; no. 3; pp. 263 - 274
Main Authors: Chung, Shu-Hsing, Yang, Yi-Shu
Format: Journal Article
Language:English
Published: Chichester, UK John Wiley & Sons, Ltd 01.05.2009
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ISSN:1524-1904, 1526-4025
Online Access:Get full text
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Summary:The subject of this paper is to study a realistic planning environment in wafer fabrication for the control or dummy (C/D) wafers problem with uncertain demand. The demand of each product is assumed with a geometric Brownian motion and approximated by a finite discrete set of scenarios. A two‐stage stochastic programming model is developed based on scenarios and solved by a deterministic equivalent large linear programming model. The model explicitly considers the objective to minimize the total cost of C/D wafers. A real‐world example is given to illustrate the practicality of a stochastic approach. The results are better in comparison with deterministic linear programming by using expectation instead of stochastic demands. The model improved the performance of control and dummy wafers management and the flexibility of determining the downgrading policy. Copyright © 2008 John Wiley & Sons, Ltd.
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ISSN:1524-1904
1526-4025
DOI:10.1002/asmb.748