Order planning for networked make-to-order enterprises – a case study

From the general trend towards global markets and a growing customer orientation, new concepts and forms of organisation are emerging, such as distributed or networked enterprises. One key requirement of these new paradigms is the availability of models and tools to support order negotiation with the optimisation of manufacturing routes and logistics and ensuring the co-ordination of all participating entities. We address the problem of planning an incoming customer order to be produced in a distributed (multi-site) and multi-stage production system. In particular, we have used as a case study the industry of semiconductors (in the business area of application specific integrated circuits). The problem is tackled in a hierarchical model, in two levels: there is a global network planning procedure, and a set of local capacity models associated with the different production units reflecting their particular features. An approach based on simulated annealing is presented, as well as a specially designed constructive heuristic, that takes into account many of the real world constraints and complexities. The general performance of the simulated annealing algorithm is assessed through some preliminary computational experiments. Finally, some concluding remarks and current directions of research are presented.