| This dissertation consists of three distinctive parts; each addresses a different aspect of supply chain planning for contract manufacturers in the high-tech industry. In the first study, we model a semiconductor manufacturer's R&D project portfolio selection problem using stochastic optimization. We develop a three-phase decision support system that has been implemented in a real-world setting, and documented as a case study. The system determines the blend of technological development the firm must invest in its R&D resources, which in turn leads to technologies that drive the firm's market position. The tool creates a level of formality and credibility to the R&D portfolio selection process that is highly uncertain, scenario-dependent, and qualitative.;In the second research, we address contract manufacturers' capacity and supply planning problems in dynamic and volatile markets. Capacity expansion requires long lead-time and capital-intensive investment, thus efficient utilization of production capacity is the key to profitability. We developed a dynamic programming model and devised a solution methodology that makes capacity and production decisions for multiple product groups.;In the third research, we model a contract manufacturer's incentive to develop its own market presence and its strategic market entry decision. We develop analytical models that characterize the contract manufacturer's profit profile and market entry decision under a wide range of conditions; the models allow us to establish theoretical foundations and new insights that can be cross-referenced with existing literature on empirical-based market entry research. We show that limited production capacity creates an effect similar to market cannibalization (substitution) observed in the transition of multiple generations of product. We further our analysis on the strategic interactions between the brand-carrying customer and the contract manufacturer. Using a game-theoretic model, we show that the customer's threat of ending a production contract may actually compel the contract manufacturer to enter an alternative market at an earlier time.;Models developed in this dissertation aim to solve relevant managerial issued faced by contract manufacturers at strategic, tactical, as well as operational levels. The primary contributions and impact of the research are expected in industries where contract manufacturing is prevalent, including electronics and computers, semiconductors, communications, and biomedical devices. |
