Using simulation-based optimization to determine production strategies and safety stock levels in semiconductor supply chains

The manufacturing of integrated circuits is one of the most complex manufacturing processes [3]. A typical semiconductor supply chain consists of frond-end facilities where wafer fabrication and wafer test take place and backend facilities where the chip assembly and final test is carried out. Die banks are placed between the frond-end and the backend facilities. They are used to store semifinished products. Distribution centers are a storage place for finished products. Cycle times of up to ten weeks and demand fluctuations are typical for semiconductor manufacturing.