An analysis of the “K-step ahead” minimum inventory variability policy(R) using SEMATECH semiconductor manufacturing data in a discrete-event simulation model

This paper addresses one alternative to optimizing resource scheduling, the Minimum Inventory Variability Policy(R) (MIVP(R)). The second level of K-step ahead MIVP(R), will be compared to the first level 1-step ahead MIVP(R) and in turn each to first-in-first-out (FIFO) using a SEMATECH factory dataset (including random machine failures and repairs) to reduce cycle time. The heuristic explanation and theory behind MIVP(R) including Little´s law (1961) and Kingman´s formula are described. Justification to use simulation modeling is discussed. Cycle time (CT) comparison results are presented. A secondary observation of comparing one simulator to another using the same factory dataset and identical scheduling rules is presented