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ABSTRACT
One of the unique production characteristics for Fabless is outsourcing capacity. The management of outsourcing capacity lays a strong impact on profitability. The purpose of this paper is to propose a mechanism of Booking Capacity Planning (BCP) and to handle the capacity allocation problem for Fabless. From both supply and demand view points, we present a production planning mechanism for Fabless and divide BCP into three stages: net demand planning, net capacity demand planning, and outsourcing capacity allocation planning. Linear programming technique is employed to construct the net demand model and the capacity allocation model for each stage to minimize the total cost including production cost, quality loss cost, purchase cost, and customer loss cost.