OPTIMAL MAINTENANCE OPERATIONS USING A RFID-BASED MONITORING SYSTEM

Abstract

A high-technology manufacturing operation requires extremely low levels of raw material shortage due to its critical manufacturing line down recovering cost. It is important to determine the replacement time of a raw material against any line down risk. We propose an RFID monitoring and investment decision system in the context of semiconductor raw material maintenance operation. This paper provides the framework of the RFID monitoring system, the mathematical model to calculate the optimal replenishment time, and the simulation model for the RFID investment decision under different risk attitude with an aggressive new supply notion of "Make to Consume." The simulation result presents that the frequency of replenishment increases and the value of the RFID monitoring system increases as the manufacturer's risk factor that reflects the degree of risk aversion reduction.