Abstract

https://ssrn.com/abstract=2884459
 


 



Stock or Print? Impact of 3D Printing on Spare Parts Logistics


Jing-Sheng Song


Duke University - Operations Management

Yue Zhang


Duke University - Fuqua School of Business

December 12, 2016


Abstract:     
We present a general framework to analyze and quantify the impact of 3D printing on spare parts logistics. We consider multiple parts facing stochastic demands. To minimize long-run average system cost, our model determines which parts should be printed and which should be stocked and the corresponding base-stock levels. When a demand for a stocked part encounters a stockout, it can either be backlogged or overflowed to the 3D printer. We derive various structural properties and characterize the optimal policy for several special systems, which lead to efficient near-optimal heuristic solutions for the general system. We demonstrate that adopting 3D technology can yield significant cost savings and this impact increases in part variety. Also, “a little flexibility goes a long way” in the sense that allowing both the stock and print options can substantially slash system inventory and cost, while the utilization of the 3D printer is surprisingly low.

Number of Pages in PDF File: 50

Keywords: 3D Printing, Dual Sourcing, Multi-Class Queues, Base-Stock Policy, Spare Parts Inventory Management, Supermodular Function Minimization


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Date posted: December 14, 2016  

Suggested Citation

Song, Jing-Sheng and Zhang, Yue, Stock or Print? Impact of 3D Printing on Spare Parts Logistics (December 12, 2016). Available at SSRN: https://ssrn.com/abstract=2884459 or http://dx.doi.org/10.2139/ssrn.2884459

Contact Information

Jing-Sheng Song
Duke University - Operations Management ( email )
100 Fuqua Drive
Durham, NC 27708
United States
Yue Zhang (Contact Author)
Duke University - Fuqua School of Business ( email )
Box 90120
Durham, NC 27708-0120
United States

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