Using iterative simulation to incorporate load-dependent lead times in master planning heuristics

In this paper, we consider heuristics for master planning in semiconductor manufacturing. While lead times are typically assumed as fixed in production planning, we use iterative simulation to take load-dependent lead times into account. An AutoSched AP simulation model of a semiconductor supply chain is used for implementing the scheme. Simulation results show that the iterative scheme converges fast and leads to less variable, more profitable production plans compared to planes obtained by the fixed lead time approach.