Evaluating alternative capacity strategies in semiconductor manufacturing under uncertain demand and price scenarios

International Journal of Production Economics

Volumn 105, Issue 2, 2007, Pages 591-606

  Chou, Yon Chun ^a   Cheng, C T ^a   Yang, Feng Cheng ^a   Liang, Yi Yu ^a  

^a NATIONAL TAIWAN UNIVERSITY   (Taiwan)

Author keywords

Capacity planning and investment; Capacity strategy; Geometric Brownian motion; Manufacturing cost; Real options; Semiconductor manufacturing

Indexed keywords

BROWNIAN MOVEMENT; COMPETITIVE INTELLIGENCE; COMPUTER SIMULATION; DATA REDUCTION; INDUSTRIAL PLANTS; INVESTMENTS; PRODUCTION ENGINEERING; STRATEGIC PLANNING;

CAPACITY INVESTMENT; CAPACITY PLANNING; GEOMETRIC BROWNIAN MOTION; MANUFACTURING COST;

SEMICONDUCTOR DEVICE MANUFACTURE;

EID: 37449014988     PISSN: 09255273     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ijpe.2006.05.006     Document Type: Article

References (20)

1. Ahmed, S., 2002. Semiconductor tool planning via multi-stage stochastic programming. In: Proceeding of the 2002 International Conference on Modeling and Analysis of Semiconductor Manufacturing, Tempe, Arizona, USA, pp. 153-157.
2. Benavides D.L., Duley J.R., and Johnson B.E. As good as it gets: Optimal Fab design and deployment. IEEE Transactions on Semiconductor Manufacturing 12 3 (1999) 281-287
3. Black F., and Scholes M. The pricing of options and corporate liabilities. The Journal of Political Economy 81 3 (1973) 637-654
4. Chou Y.-C., and Wu C.-S. Economic analysis and optimization of tool portfolio in semiconductor manufacturing. IEEE Transactions on Semiconductor Manufacturing 15 4 (2002) 447-453
5. Christie M.E.R., and Wu D. Semiconductor capacity planning: Stochastic modeling and computational studies. IIE Transactions 34 (2002) 131-143
6. Cox J., Ross S., and Rubinstein M. Option pricing: A simplified approach. Journal of Financial Economics 7 (1979) 229-263
7. Geary S., Disney S.M., and Towill D.R. On bullwhip in supply chains-Historical review, present practice and expected future impact. International Journal of Production Economics 101 1 (2006) 2-18
8. Hood S.J., Bermon S., and Barahona F. Capacity planning under demand uncertainty for semiconductor manufacturing. IEEE Transactions on Semiconductor Manufacturing 16 2 (2003) 273-280
9. International SEMATECH, 2002. Industry Economic Model.
10. Jarrow, A.R., Rudd, A., 1983. Option pricing (Irwin).
11. Karabuk, S., Wu, S.D., 2001. Coordinating strategic capacity planning in the semiconductor industry. Technical Report 99T-11, Department of IMSE, Lehigh University.
12. Liang, Y.-Y., Chou, Y.-C., 2003. Option-based capacity planning for semiconductor manufacturing. In: IEEE International Symposium on Semiconductor Manufacturing, San Jose, California, USA, September 30-October 2, pp. 77-80.
13. Luenberger D.G. Investment Science (1998), Oxford University Press, Oxford (Chapter 11)
14. Luss H. Operations research and capacity expansion problems: A review. Operations Research 30 5 (1982) 907-947
15. Nazzal D., Mollaghasemi M., and Anderson D. A simulation-based evaluation of the cost of cycle time reduction in Agere Systems wafer fabrication facility-A case study. International Journal of Production Economics 100 1 (2006) 300-313
16. Neudorff, J., 1999. Static capacity analysis using Microsoft Visual Basic. In: International Conference on Semiconductor Manufacturing Operational Modeling and Simulation, San Francisco, pp. 207-212.
17. Swaminathan J.M. Tool capacity planning for semiconductor fabrication facilities under demand uncertainty. European Journal of Operations Research 120 (2000) 545-558
18. Tsay R.S. Analysis of Financial Time Series (2002), Wiley, New York
19. Witte, J.D., 1996. Using static capacity modelling techniques in semiconductor manufacturing. In: IEEE/SEMI Advanced Semiconductor Manufacturing Conference and Workshop, pp. 31-35.
20. Wu, W.-F., Yang, J.-L., Liao, J.-T., 1998. Static capacity checking system with cycle time considered. In: The Seventh International Symposium on Semiconductor Manufacturing, pp. 307-310.