2001 deliverable report: intelligent multidimensional demand aggregation/disaggregation strategies

2001 deliverable report:. intelligent multidimensional demand aggregation/disaggregation strategies. task 879.001: intelligent demand aggregation & forecast solutions. project 879: demand data mining & planning in semiconductor

The demand uncertainty propagated and magnified over the semiconductor demand-supply network is the crucial cause of poor manufacturing/logistic plans. To manage the demandvariability, appropriate demand aggregation/forecasting approaches are known to be effective. In the first year of this research task, a multivariate time series model is used as a study vehicle to investigate the effect of aggregating interrelated demands. Heuristic demand grouping algorithms, i.e., a variety of Greedy algorithms, are also developed to minimize the safety stock costs under demand uncertainty. The research results provide practitioners practical guidelines and methodologies to select proper aggregation/forecasting approaches and to group demands for minimum safety stock costs.