A robust optimization approach for production planning under exogenous planned lead times

Title A robust optimization approach for production planning under exogenous planned lead times
Author Albey, Erinç, Yanıkoğlu, İhsan, Uzsoy, R.
Publication Date: 2019
Publication Place - IEEE
Type Document
Language English
Digital Yes
Manuscript No
Library: Özyeğin University
Library Asset ID 978-1-7281-3283-9
Record ID 5c569324-97be-4ee5-884d-e6703aa202c0
Library Location Industrial Engineering
Date 2019
Sample Text Many production planning models applied in semiconductor manufacturing represent lead times as fixed exogenous parameters. However, in reality, lead times must be treated as realizations of released lots' cycle times, which are in fact random variables. In this paper, we present a distributionally robust release planning model that allows planned lead time probability estimates to vary over a specified ambiguity set. We evaluate the performance of non-robust and robust approaches using a simulation model of a scaled-down wafer fabrication facility. We examine the effect of increasing uncertainty in the estimated lead time parameters on the objective function value and compare the worst-case, average optimality, and feasibility of the two approaches. The numerical results show that the average objective function value of the robust solutions are better than that of the nominal solution by a margin of almost 20% in the scenario with the highest uncertainty level.
DOI 10.1109/WSC40007.2019.9004671
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A robust optimization approach for production planning under exogenous planned lead times

Author Albey, Erinç, Yanıkoğlu, İhsan, Uzsoy, R.
Publication Date 2019
Publication Place - IEEE
Type Document
Language English
Digital Yes
Manuscript No
Library Özyeğin University
Library Asset ID 978-1-7281-3283-9
Record ID 5c569324-97be-4ee5-884d-e6703aa202c0
Library Location Industrial Engineering
Date 2019
Sample Text Many production planning models applied in semiconductor manufacturing represent lead times as fixed exogenous parameters. However, in reality, lead times must be treated as realizations of released lots' cycle times, which are in fact random variables. In this paper, we present a distributionally robust release planning model that allows planned lead time probability estimates to vary over a specified ambiguity set. We evaluate the performance of non-robust and robust approaches using a simulation model of a scaled-down wafer fabrication facility. We examine the effect of increasing uncertainty in the estimated lead time parameters on the objective function value and compare the worst-case, average optimality, and feasibility of the two approaches. The numerical results show that the average objective function value of the robust solutions are better than that of the nominal solution by a margin of almost 20% in the scenario with the highest uncertainty level.
DOI 10.1109/WSC40007.2019.9004671
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