Supply chain network design

A case study of the regional facilities analysis for a 3D printing company

Abstract

The growing 3D printing market can be an attraction for investment in new businesses, which may entail strategic planning for new ventures. This paper presents a case study of designing a 3D printing supply chain network. The objective is on analyzing regional facility configurations in order to decrease investment risks of an organization aiming to provide additive manufacturing services for orthopedic and dental prosthesis. To this end, the competitive environment, the aggregator factor and logistics costs, tariffs and tax incentives, regional demand, political factors, the value of currency, and the uncertainty of demand are analyzed. Results indicate that the Framework for Network Design Decisions adopted effectively allows regional facility configuration analysis. It also suggests that there are no factors hindering the implementation of the 3D printing service company. In the region studied, there are fiscal incentives of more than 60% for taxes on the circulation of goods between municipalities, which can be an advantage when locating facilities outside the capital. Competitors are well qualified, but there is space for new companies focused on quality and price, which may be a case for specialized products, as protheses.  The estimated demand range is from 146 to 509 units per month, which may be an opportunity for a new entrant, given the few additive manufacturing ventures identified in the region