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Production Control in Multistage Systems with Variable Yield Losses

Hau L. Lee, Candace Arai Yano

Operations Research · 1988 · Volume 36 · Issue 2

DOI: 10.1287/opre.36.2.269

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

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