A cloud manufacturing service to control outsourcing production

Haw Ching Yang, Ying Liang Chen, Fan Tien Cheng

Research output: Contribution to journalArticlepeer-review


Outsourcing production enables fabless companies to focus on their main business and yet still stay competitive in the supply chain. However, as the actual production process of a Contract Manufacturer (CM) is encapsulated, a Fabless Manufacturer (FM) frequently struggles with higher inventory levels than its actual needs in response to outsourcing production risks. This study proposes Virtual Production Control Services (VPCS) for a company to identify the production risks of its CM and come up with corresponding solutions for improving demand fulfillment. By mining the updated work-in-process data from the CM, the VPCS can identify the potential production risks in a timely manner by estimating production progress based on an optimal planning model. In addition, production risks can be mitigated after applying a novel risk-control scheme such that demands can be fulfilled with reduced inventory levels. An FM case study indicates that VPCS is a promising method to improve the outsourcing efficiency of a company in the IC supply chain.

Original languageEnglish
Pages (from-to)838-850
Number of pages13
JournalJournal of the Chinese Institute of Engineers, Transactions of the Chinese Institute of Engineers,Series A
Issue number8
Publication statusPublished - 2020

All Science Journal Classification (ASJC) codes

  • Engineering(all)


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