Publication: Hybrid simulation and optimization of semiconductor supply chain
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Date
2024-07-01
Authors
Chew Qing Long
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Abstract
The semiconductor supply chain is notably complex, encompassing multiple
stages of design, fabrication, assembly, testing, and packaging which often distributed
across various countries. This complexity, coupled with demand volatility,
manufacturing stochasticity, and the bullwhip effect, presents substantial challenges in
production planning and scheduling. To address these issues, the study proposes a
hybrid simulation model that merges multi-agent system with system dynamics to
optimize production planning and scheduling within a semiconductor supply chain
framework. In the model, the system dynamics emulate the operational behaviours of
individual entities (wafer fabrication and outsourced semiconductor assembly and test),
and the multi-agent system effectively captures the intricate interactions and
dependencies among different entities in the supply chain, facilitating realistic
simulations. The model then employs a genetic algorithm for optimizing parameters to
minimize total costs and enhance overall performance. Through a series of optimization
experiments conducted under varying initial stock conditions, the study elucidates the
critical impact of initial stock levels on supply chain performance. It reveals the inherent
trade-offs between holding costs and stockout risks, underscoring the need for strategic
planning and dynamic optimization to balance inventory levels and production capacity.
The findings of this study highlight the significance of iterative optimization and precise
parameter tuning in achieving a cost-effective and robust supply chain. This approach
ensures a balanced trade-off between holding costs and the risk of stockouts, ultimately
contributing to a more efficient and resilient semiconductor supply chain. The study's
insights into the dependencies and interactions within the supply chain offer valuable
guidance for improving scheduling, production planning, and overall supply chain
management in the semiconductor industry.