A REPLENISHMENT MODEL FOR VMI WAREHOUSE OF LED-CM PLANTS

Year 2017, Volume: 4 Issue: 1, 12 - 27, 30.03.2017

Lun-meng Su Horng-huei Wu Chiu-chi Wei

https://doi.org/10.17261/Pressacademia.2017.367

Abstract

Purpose- The LED Chip
Manufacturing (LED-CM) is an important process in the LED supply chain. Due to
customer pressure or to providing better services in order to enhance
competitiveness, the Vendor Managed Inventory (VMI) strategy is applied in
LED-CM plant in recent years. The chips in the VMI warehouse of the customers
must meet the specifications of the customer requirements. Basically, Chips of
a specification of the customer requirements compose of the chips of different
bins. A bin is defined by the definite electrical functions of LED chips.
Deciding how many chips of each
feasible bin must be allocated to a replenishment order (RO) affects the
performance of VMI in  LED-CM plant.  

Methodology- A model of
allocating chips from bins to ROs for LED-CM plants is proposed in this paper.
Three objectives, i.e., maximizing ROs of delivery, maximizing throughput of
delivery and maximizing the total left chips of the feasible bins of potential
ROs, are considered in the proposed model to obtain the best result. 

Findings- The obtained
ROs of delivery or throughput of delivery could serve as a valuable informance
for LED-CM plants. 

Conclusion- Results
show that employing the proposed methodology can facilitate LED-CM plants to
implement the VMI service effectively. 

Keywords

LED chip manufacturing, vendor managed inventory, peplenishment order, chips allocation, optimal inventory allocation models

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