To understand the IBM central planning engine (CPE) model, two essential knowledge must first be obtained.
Semiconductor Manufacturing Background
Wafers are first produced and binned (tested) and characterized into category. Followed by dicing and organized into devices. They will then be integrated into modules which will be assembled to cards. However any products within this supply chain can be ordered by the customers. To understand the process furthermore, Figure 1 shows that B2 can be binned into C1 or C2 which will be binned into D1 and D2. They will then be binned into E1 and E2 which are assembled into devices. However, if C1 contains similar characteristics as C2, it can used to substitute C2 in case of C2 shortage. E2, can be binned from D1, D2 and D3, is called an alternate bill of material which means it can be produced in multiple ways. Considering all the possible ways of manufacturing a card in a real world scenario, the long manufacturing lead time of wafers, different demand of different forms of semiconductors and complication of having production plants in multiple places, using a pure optimization model will lead to an unsatisfactory run-time. Not to mention meeting prioritized demands.
Explosion and Implosion
Explosion is where the demand of end products (e.g. Cards) is known, and by working up the supply line starting from card, it can be estimated how many modules are needed and therefore devices and wafers. It calculates the resources and time needed to satisfy all demands on time.
Implosion is the vice versa. By understanding how many