Supply chain model for the semiconductor industry of global market

Abstract

Supply chain management (SCM) is a new approach to satisfy customers of products and services via an integrated management for the whole business processes of the manufacturing from the raw material procurement to the product or service delivery to customers. With the rapid development of the information technology and global market environment the company is required to manage whole supply chain network to gain the competitiveness in business. Typically semiconductor industry is the one whose supply chain network is distributed all over the world, and its manufacturing process has the particular characteristics which has to be considered in the modeling of supply chain. In this paper we suggest the push and pull type supply chain models and their mathematical formulation for the semiconductor industry of the global market. Die bank between the front-end and back-end in the semiconductor manufacturing process is assumed to be the decoupling point by which two models are divided. Push supply chain model is based on the high throughput and the balance of the WIP flow, which takes the characteristics of re-entrant mechanism into account. Pull supply chain model is constructed considering order-based manufacturing, distribution and transportation process in order to meet customer's request appropriately. Development issues of the system and its implementation are also discussed.