Integrating resilience and reliability in semiconductor supply chains during disruptions

Abstract

The semiconductor industry, a cornerstone of modern technology, has been crucial in driving globalization and supporting various sectors, from consumer electronics to automotive industries. However, in recent years, the industry has faced substantial challenges threatening its ability to meet the surging demand for semiconductor chips. Disruptions at any point in the supply chain, from raw material sourcing to end-product delivery, can substantially influence the semiconductor ecosystem. The intricate nature of such SCs makes them highly vulnerable to various disruptions, emphasizing the critical need for building resilient and reliable supply chain strategies. This article presents comprehensive research aimed at addressing critical gaps in the understanding and management of resilience and reliability within the semiconductor supply chain (SSC). This study proposes a multi-objective mixed-integer non-linear programming (MO-MINLP) model to configure an SSC while considering reliability and resilience measures. It emphasizes and draws attention to the importance of resilience and reliability in managing SSC disruptions during a pandemic and potential future epidemic outbreak. Exploring the precise breakdown of batch transportation between two sites shows how disruption can affect product flow along the SC. The applicability of the proposed method is demonstrated through a numerical example of an SSC, solved using the LINGO solver. Finally, a sensitivity analysis is conducted on the model's parameters to assess the capability and effectiveness of the results from managerial viewpoints.