Robust Production and Transportation Control in Thin Film Transistor - Liquid Crystal Display (TFT-LCD) Industry under Uncertainties
Resource
International Journal of Production Research, 48(20), 6037-6060
Journal
International Journal of Production Research
Journal Volume
48
Journal Issue
20
Pages
6037-6060
Date Issued
2010
Date
2010
Author(s)
Abstract
Abstract This paper studies the production and transportation control (PTC) problems under demand and price uncertainties in a multi-product, two-echelon, and hybrid thin film transistor-liquid crystal display (TFT-LCD) production chain. The unique characteristics of the TFT-LCD industry, including quality grades and alternative bill-of-materials (BOMs), are considered in this study. The objective is to determine a production and transportation policy that is robust to price and demand uncertainties. This two-echelon PTC problem is formulated as several two-stage robust optimisation models. An iterative procedure is developed to apply and solve these two-stage models in a TFT-LCD production chain. Our simulation study shows that the proposed method can significantly increase profits while reducing transportation and inventory costs. In addition to improving mean and variance of profits, we use several risk measures to verify the robustness of the iterative optimisation procedure. Keywords: production and transportation controlrobust optimisationTFT-LCD Acknowledgements This research was supported in part by the National Science Council of Taiwan under grant NSC97-2221-E-002-154-MY3 and NSC96-3114-P-002-012-Y.
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journal article
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