IBM Solves a Mixed-Integer Program to Optimize Its Semiconductor Supply Chain

Brian T. Denton (), John Forrest () and R. John Milne ()
Additional contact information
Brian T. Denton: Division of Health Care Policy and Research, Mayo Clinic, Pavilion Building 3-06, Rochester, Minnesota 55906
John Forrest: IBM T. J. Watson Research Center, PO Box 218, Yorktown Heights, New York 10598
R. John Milne: IBM Systems and Technology Group, 1000 River Road, Essex Junction, Vermont 05452

Interfaces, 2006, vol. 36, issue 5, 386-399

Abstract: IBM Systems and Technology Group uses operations research models and methods extensively for solving large-scale supply chain optimization (SCO) problems for planning its extended enterprise semiconductor supply chain. The large-scale nature of these problems necessitates the use of computationally efficient solution methods. However, the complexity of the models makes developing robust solution methods a challenge. We developed a mixed-integer programming (MIP) model and supporting heuristics for optimizing IBM’s semiconductor supply chain. We designed three heuristics, driven by practical applications, for capturing the discrete aspects of the MIP. We leverage the model structure to overcome computational hurdles resulting from the large-scale problem. IBM uses the model and method daily for operational and strategic planning decisions and has saved substantial costs.

Keywords: computers; computer sciences; programming; integer; applications (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://dx.doi.org/10.1287/inte.1060.0238 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:orinte:v:36:y:2006:i:5:p:386-399

Access Statistics for this article

More articles in Interfaces from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().