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Production Control in Multistage Systems with Variable Yield Losses

Hau L. Lee and Candace Arai Yano
Additional contact information
Hau L. Lee: Stanford University, Stanford, California
Candace Arai Yano: University of Michigan, Ann Arbor, Michigan

Operations Research, 1988, vol. 36, issue 2, 269-278

Abstract: Many manufacturing processes involved in the fabrication and assembly of “high-tech” components have highly variable yields that complicate the planning and control of production. We develop a procedure to determine optimal input quantities at each stage of a serial production system in which process yields at each stage of production may be stochastic. The procedure is applied to an example in the manufacture of a light-emitting diode (LED) display using actual yield data. We also provide a brief analysis of the quantifiable savings obtained by reducing the variability of the yield at one production stage.

Keywords: 344 optimal policies for yield losses; 360 production reject allowances (search for similar items in EconPapers)
Date: 1988
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Citations: View citations in EconPapers (36)

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