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Production Control in Multistage Systems with Variable Yield Losses

Author

Listed:
  • Hau L. Lee

    (Stanford University, Stanford, California)

  • Candace Arai Yano

    (University of Michigan, Ann Arbor, Michigan)

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.

Suggested Citation

  • Hau L. Lee & Candace Arai Yano, 1988. "Production Control in Multistage Systems with Variable Yield Losses," Operations Research, INFORMS, vol. 36(2), pages 269-278, April.
    • Handle: RePEc:inm:oropre:v:36:y:1988:i:2:p:269-278
    DOI: 10.1287/opre.36.2.269
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