Facility location optimization with market segmentation for additive manufacturing material supplier network using quantum annealing

Abstract

The determination of the material suppliers for additive manufacturing (AM) centers is a typical facility location problem (FLP). Current methods for solving the FLP in AM network design mainly focus on improving the cost, distance, and supply chain aspects and neglect market segmentation. However, AM feedstock suppliers need to understand the market size they serve so they can better prepare their inventory plans. Therefore, in this paper, we propose a new approach for the FLP with geographic market segmentation of AM material supplier networks, in which the facility locations and market segments of AM material suppliers are optimized in a multi-objective optimization problem. In order to confirm the feasibility of the proposed method, a simplified design case for a German state has been carried out.