Production Capacity Pooling in Additive Manufacturing, Possibilities and Challenges

Abstract

Industries such as aviation tend to hold large amounts of capital tied to spare parts inventories to insure a high availability [1]. One effective approach to increase the efficiency in inventory management has been resource pooling [2]. However, the emergence of additive manufacturing (AM) enables the new paradigm of production capacity pooling, which varies from current ones. AM’s inherent characteristics may realize capacity sharing among distinct industries, alleviate the need for high safety stock levels and enable better customer service through the reduction of transshipments for spare parts. The advantages can be extended to the broader fulfillment reach of the firm in other geographical areas without expanding its existing production capacity or inventory (and other benefits from a distributed production setting). However, issues with inter-organizational agreements, testing and production reliability may slow down the pooling process while the required facilities are in place. This paper aims to extend the existing literature on implications of this growing phenomenon on inventory management practices. Study methodology is conceptual analysis.