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.
|Journal||Journal of the Chinese Institute of Engineers, Transactions of the Chinese Institute of Engineers,Series A|
|Publication status||Accepted/In press - 2020|
All Science Journal Classification (ASJC) codes