A high-technology manufacturing operation requires extremely low levels of raw material shortage due to its critical manufacturing line down recovering cost. It is important to determine the replacement time of a raw material against any line down risk. We propose an RFID monitoring and investment decision system in the context of semiconductor raw material maintenance operation. This paper provides the framework of the RFID monitoring system, the mathematical model to calculate the optimal replenishment time, and the simulation model for the RFID investment decision under different risk attitude with an aggressive new supply notion of "Make to Consume." The simulation result presents that the frequency of replenishment increases and the value of the RFID monitoring system increases as the manufacturer's risk factor that reflects the degree of risk aversion reduction.
|Number of pages||9|
|Journal||International Journal of Industrial Engineering : Theory Applications and Practice|
|Publication status||Published - 2015|
Bibliographical noteFunding Information:
This research was supported by the Basic Science Research Program through the National Research Foundation of Korea (NRF) funded by the Ministry of Education (NRF-2012R1A1A2043269).
© 2015 International Journal of Industrial Engineering.
- Maintenance operation
- Risk reverse attitude
- Value of information
ASJC Scopus subject areas
- Industrial and Manufacturing Engineering