Research Paper on:
IBM Microelectronics Division and Linear Programming

Unformatted Sample Text from the Research Paper:
reduce any lag times and reduce the costs that may be incurred as a result of inefficiencies as well as increasing the synergy with which processes may operate. In a  recent article printed in the January 2001 issue of Interfaces journal entitle Matching Assets with Demand in Supply-Chain Management at IBM Microelectronics, Lyon et al looked at the way that  linear programming was utilised to increase efficiency in the value chain. The decision of IBM to increase the scope of their production in the microelectronics division to produce goods for  external as well as internal customers meant that there would be an increase in production. In order to be able to handle this increase in production there was the need  for an overhaul of the supply chain (Lyon et al, 2001). A project team; PROFT, was instigated and used linear programmes which they combined with more traditional resource planning algorithms  (Lyon et al, 2001). The team used these techniques to build tools that could be used by the IBM microelectronics division with the result of increasing resource maximisation and the  use of factory time as well as reducing the time between the customer placing an order and receiving it (Lyon et al, 2001). If we wish to understand how  this was achieved we can look more carefully at this case. The situation here was one of different processes taking place in different locations, each with different cycle times. The  different components that are made may require different levels of processing (Lyon et al, 2001). For example, wafers alone may be needed, alternatively it may be modules and cards that  are shipped. To develop models the first stage was to define a base level or production that could be used as the core for the developing models. As the processes