Managing Capacity in the High-tech Industry: a Review of Literature

This article surveys a new generation of analytical tools for capacity planning and management, especially in high-tech industries such as semiconductors, electronics and bio-techs. The objectives of the article are to (1) identify fundamental theory driving current research in capacity management, (2) review emerging models in operations research, game theory, and economics that address strategic, tactical and operational decision models for high-tech capacity management, and (3) take an in-depth look at capacity-optimization models developed in the specific context of semiconductor manufacturing. The goal of this survey is to go beyond typical production-planning and capacity-management literature and to examine research that can potentially broaden capacity-planning research. For instance, we explore the role of option theory and real options in modeling