Impact of Additive Manufacturing on Spare Parts Inventory Management

This paper examines the impact of additive manufacturing (AM) on spare parts inventory management, a critical area in supply chain management where balancing in-house production and external ordering is increasingly challenging. In traditional inventory management, companies often face long lead times and high costs associated with external suppliers, especially for low-demand or specialized spare parts. As industries move towards more dynamic and responsive manufacturing environments, the ability to maintain optimal inventory levels becomes crucial. Additive manufacturing, with its potential for rapid, on-demand production, offers a transformative solution to these challenges. This study develops a mathematical model to determine the optimal mix of AM and external sourcing, aiming to minimize total costs and lead times while considering various cost factors and production capacities.