Master Production Schedule and System for Excelling Enterprise Resources (SEER) in the LED Industry

Jia-Nian Zheng and Chen-Fu Chien, Member, IEEE

Department of Industrial Engineering and Engineering Management,

National Tsing Hua University

MRPII 14

Abstract

Every enterprise is pursuing energy conservation and carbon reduction development. Under this trend, light-emitting diodes (LEDs) are becoming the focus of the lighting industry. Because of the different levels or types of chips and substrates, the characteristics of products will be different.

LED products are categorized according to characteristics such as luminescence efficiency, wavelength (color), and the reference voltage level. Traditionally, lack of good

communication channels for production and sales department led to excessive inventories, even though the demand was satisfied.

These products face the risk of being unsalable due to the short product life cycle. Therefore, this study developed a system for excelling enterprise resources (SEER) for LED

manufacturing that optimizes chip procurement and production planning by linear programming.

The system considered the deviation of the output distribution during the production to

allocate the amount of chip and process to maximize profit. This study chooses the LED packaging company in Taiwan Hsinchu Science Park as an empirical case. We analyzed the different planning criteria to find some management rules and let this system become a communication tool between the production and sales department.