Supply-chain Production Planning

Abstract

In this chapter we describe development of a production planning system for Advanced Micro Devices (AMD), a major supplier of integrated circuits. This development is motivated by AMD’s efforts in development of a Total Order Management System for higher quality and faster response to customer orders. The Order Management System contains a statement of supply availability for a foreseeable future. Based on this statement of availability, new orders are assessed and responded to. Associated with the Order Management System is a production planning system that takes as input the statement of demand and produces an optimized solution plan. The planning process is regenerative and executed on a regular basis to update the statement of supply via updated demand and production status data. There is room in the Order Management System to execute exception-based net-change scenarios when particular important order requests do not match the availability outlook. Our focus in this chapter is the presentation of the planning system.