Additive manufacturing in the spare parts supply chain

As additive manufacturing (AM) evolves to become a common method of producing final parts, further study of this computer integrated technology is necessary. The purpose of this research is to evaluate the potential impact of additive manufacturing improvements on the configuration of spare parts supply chains. This goal has been accomplished through scenario modeling of a real-life spare parts supply chain in the aeronautics industry. The spare parts supply chain of the F-18 Super Hornet fighter jet was selected as the case study because the air-cooling ducts of the environmental control system are produced using AM technology. In total, four scenarios are investigated that vary the supply chain configurations and additive manufacturing machine specifications. The reference scenario is based on the spare parts supplier's current practice and the possible future decentralization of production and likely improvements in AM technology. Total operating cost, including downtime cost, is used to compare the scenarios. We found that using current AM technology, centralized production is clearly the preferable supply chain configuration in the case example. However, distributed spare parts production becomes practical as AM machines become less capital intensive, more autonomous and offer shorter production cycles. This investigation provides guidance for the development of additive manufacturing machines and their possible deployment in spare parts supply chains. This study contributes to the emerging literature on AM deployment in supply chains with a real-world case setting and scenario model illustrating the cost trade-offs and critical requirements for technology development. (C) 2013 Elsevier B.V. All rights reserved.