Strategic supply network planning with order fulfillment modes  

Oleh:

Wang, Chi-Tai

Jenis: Article from Proceeding
Dalam koleksi: The 14th Asia Pacific Industrial Engineering and Management Systems Conference (APIEMS), 3-6 December 2013 Cebu, Philippines, page 1-8.
Topik: strategic planning; supply network; light emitting diode manufacturing; order fulfillment; mixed-integer programming
Fulltext: 1035.pdf (270.7KB)

Isi artikel

Taiwan is a major producer of the world’s consumer electronics devices. In many cases, these devices are manufactured by Taiwanese firms using their complex supply networks established across Taiwan and China.Consequently, when conducting supply network planning (SNP), these firms must address issues resulted fromthe unique political and economic relationships between Taiwan and China.In one occasion, a major Taiwaneselight emitting diode(LED) firm operatessuch a supply network to fabricate LED chips. In order to comply with government regulations, the firm must take each customer order eitherinTaiwan or in China, depending onthecustomer’s nationality. If the customer is a Chinese company, for instance,the LED firm must take itsorders in China; on the other hand, the LED firm must take the orders of an American companyin Taiwan. Furthermore, each customer order isassociated with one or more “fulfillment modes” whichspecify where the LED wafers can be fabricated and where the subsequent assembly operations can be performed.These fulfillment modes are predetermined, based onfactors such as technical capabilities of the manufacturing facilities, business strategies of the firm, government regulations, andcustomer preferences. Therefore, when conducting strategic SNP, it is crucial for the LED firmto know which customer orders to take and which fulfillment mode or modes to adopt for each order, so that itcan make the most profit while satisfying governmentregulations and other SNP requirements. There is no related research in the literature,and we propose a mixed-integer programming model to address this problem effectively.

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