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\iteman{io-port 05680238}
\itemau{Chen, Tzu-Li; Lin, James T.; Fang, Shu-Cherng}
\itemti{A shadow-price based heuristic for capacity planning of TFT-LCD manufacturing.}
\itemso{J. Ind. Manag. Optim. 6, No. 1, 209-239 (2010).}
\itemab
Summary: This paper studies the capacity planning and expansion for the thin film transistor - liquid crystal display (TFT-LCD) manufacturing. Capacity planning is critical to TFT-LCD industry due to its complex product hierarchy and increasing product types; the coexistence of multiple generations of manufacturing technologies in a multi-site production environment; and the rapidly growing market demands. One key purpose of capacity planning is to simultaneously determine the profitable ``product mix" and ``production quantities" of each product group across various generation sites in a particular period and the optimal ``capacity expansion quantity" of specific product groups at a certain site to improve the limited flexibility configurations through the acquisition of new auxiliary tools. This paper proposes a mixed integer linear programming model for capacity planning that incorporates practical characteristics and constraints in TFT-LCD manufacturing. A shadow-price based heuristic is developed to find a near-optimal solution. Preliminary computational study shows that the proposed heuristic provides good quality solutions in a reasonable amount of time. The proposed heuristic outperforms the traditional branch and bound method as the data size becomes large.
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\itemut{capacity planning; TFT-LCD manufacturing; mixed integer linear programming; shadow price}
\itemli{doi:10.3934/jimo.2010.6.209}
\end