A cloud manufacturing service to control outsourcing production

Haw Ching Yang, Ying Liang Chen, Fan Tien Cheng

Research output: Contribution to journalArticle

Abstract

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.

All Science Journal Classification (ASJC) codes

  • Engineering(all)

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