Exact and Heuristic Algorithms for a bi-criteria Order-Lot Pegging Problem in a Multi-Fab Setting

We study an order-lot pegging problem in semiconductor supply chains. The problem deals with assigning already released lots to orders and with planning wafer releases to fulfill orders if there are not enough lots in the wafer fabs. The objectives are minimizing the total tardiness of the orders and minimizing the total cost. We are interested in computing the set of Pareto-optimal plans. Based on a mixed-integer linear programming (MILP) formulation, an ϵ- constraint method is proposed for small-sized problem instances. Moreover, a non-dominated sorting genetic algorithm (NSGA)-II is designed for tackling larger problem instances within a reasonable amount of computing time. We perform computational experiments with the ε-constraint method for small-sized problem instances and with the NSGA-II scheme for small- and medium-sized problem instances.