Investigating the Potential of 3D Printing Technology on Spare Parts Business for Supply Chain Management in Appliance Industry

Abstract

3D printing is a process used to fabricate three-dimensional objects based on the digitally controlled deposition of successive layers of material until a final structure is created. This research presents a case study in which two models were built to estimate the operation cost of a spare parts business for an appliance manufacturing company: a base model and an alternate benchmark model in which spare parts are supplied by the traditional manufacturing method or 3D printing. With the developed models, this research compares the total inventory cost of ownership and the number of suppliers for two supply chain management scenarios. Further, a third model (hybrid cost model) was established where spare parts are supplied partially by traditional manufacturing and partially by 3D printing according to maximize cost savings. The cost analysis from the three models concludes that the mixed model shows the best outcome for simplifying supply management complexity and ultimately reducing total cost of spare parts inventory. This case study can help appliance industries to assess and decide if 3D printing is a feasible production method for spare parts in terms of supply chain management strategy.