IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v286y2025ics0925527325001355.html

Integrating 3D printing and inventory to manage multi-product demand uncertainties

Author

Listed:
  • Deng, Lan
  • Zhang, Juliang
  • Cheng, T.C.E.

Abstract

Recently, many firms have rapidly adopted 3D printing technology to better align their supplies with demands and enhance profitability. We examine a firm that sells multiple products and utilizes 3D printing to navigate uncertain demands. Initially, the firm determines product inventories, 3D printing capacity, and raw material investments. Once the demands are realized, they are first met using the existing inventories, with any excess fulfilled through 3D printing. We analyze the optimal policy and profit, comparing the outcomes with and without 3D printing to assess its value. Our findings indicate that 3D printing is advantageous when investment and raw material costs are low. In addition, we explore how various parameters affect this value, identifying two key benefits of 3D printing: cost-saving and flexibility. Given the complexity of determining an exact optimal policy for the general case, we propose a heuristic algorithm to address this challenge. Finally, we investigate the influence of product characteristics, diversity, and supply disruption risks on the value of 3D printing, concluding that its value increases with product diversity and it can effectively mitigate supply risks.

Suggested Citation

  • Deng, Lan & Zhang, Juliang & Cheng, T.C.E., 2025. "Integrating 3D printing and inventory to manage multi-product demand uncertainties," International Journal of Production Economics, Elsevier, vol. 286(C).
    • Handle: RePEc:eee:proeco:v:286:y:2025:i:c:s0925527325001355
    DOI: 10.1016/j.ijpe.2025.109650
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527325001355
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2025.109650?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Jing-Sheng Song & Yue Zhang, 2020. "Stock or Print? Impact of 3-D Printing on Spare Parts Logistics," Management Science, INFORMS, vol. 66(9), pages 3860-3878, September.
    2. Bram Westerweel & Rob Basten & Jelmar den Boer & Geert‐Jan van Houtum, 2021. "Printing Spare Parts at Remote Locations: Fulfilling the Promise of Additive Manufacturing," Production and Operations Management, Production and Operations Management Society, vol. 30(6), pages 1615-1632, June.
    3. Jiri Chod & Nils Rudi & Jan A. Van Mieghem, 2010. "Operational Flexibility and Financial Hedging: Complements or Substitutes?," Management Science, INFORMS, vol. 56(6), pages 1030-1045, June.
    4. Nie, Jiajia & Xu, Xiaoxuan & Yue, Xiaohang & Guo, Qiang & Zhou, Yu, 2023. "Less is more: A strategic analysis of 3D printing with limited capacity," International Journal of Production Economics, Elsevier, vol. 258(C).
    5. Li Chen & Yao Cui & Hau L. Lee, 2021. "Retailing with 3D Printing," Production and Operations Management, Production and Operations Management Society, vol. 30(7), pages 1986-2007, July.
    6. Lingxiu Dong & Panos Kouvelis & Zhongjun Tian, 2017. "Responsive Pricing Newsvendor Networks with Discretionary Commonality," Production and Operations Management, Production and Operations Management Society, vol. 26(8), pages 1534-1552, August.
    7. Arbabian, Mohammad E., 2022. "Supply Chain Coordination via Additive Manufacturing," International Journal of Production Economics, Elsevier, vol. 243(C).
    8. Chaolin Yang & Zhenyu Hu & Sean X. Zhou, 2021. "Multilocation Newsvendor Problem: Centralization and Inventory Pooling," Management Science, INFORMS, vol. 67(1), pages 185-200, January.
    9. Beltagui, Ahmad & Gold, Stefan & Kunz, Nathan & Reiner, Gerald, 2023. "Special Issue: Rethinking operations and supply chain management in light of the 3D printing revolution," International Journal of Production Economics, Elsevier, vol. 255(C).
    10. Harrison, J. Michael & Van Mieghem, Jan A., 1999. "Multi-resource investment strategies: Operational hedging under demand uncertainty," European Journal of Operational Research, Elsevier, vol. 113(1), pages 17-29, February.
    11. Banning Garrett, 2014. "3D Printing: New Economic Paradigms and Strategic Shifts," Global Policy, London School of Economics and Political Science, vol. 5(1), pages 70-75, February.
    12. Bin Hu & Zhankun Sun, 2022. "Managing Self-Replicating Innovative Goods," Management Science, INFORMS, vol. 68(1), pages 399-419, January.
    13. Knofius, N. & van der Heijden, M.C. & Zijm, W.H.M., 2019. "Consolidating spare parts for asset maintenance with additive manufacturing," International Journal of Production Economics, Elsevier, vol. 208(C), pages 269-280.
    14. Jan A. Van Mieghem, 1998. "Investment Strategies for Flexible Resources," Management Science, INFORMS, vol. 44(8), pages 1071-1078, August.
    15. Sun, Mingyao & Ng, Chi To & Yang, Liu & Zhang, Tianhua, 2024. "Optimal after-sales service offering strategy: Additive manufacturing, traditional manufacturing, or hybrid?," International Journal of Production Economics, Elsevier, vol. 268(C).
    16. Lingxiu Dong & Duo Shi & Fuqiang Zhang, 2022. "3D Printing and Product Assortment Strategy," Management Science, INFORMS, vol. 68(8), pages 5724-5744, August.
    17. Charles H. Fine & Robert M. Freund, 1990. "Optimal Investment in Product-Flexible Manufacturing Capacity," Management Science, INFORMS, vol. 36(4), pages 449-466, April.
    18. Yue Zhang & Bram Westerweel & Rob Basten & Jing-Sheng Song, 2022. "Distributed 3D Printing of Spare Parts via IP Licensing," Manufacturing & Service Operations Management, INFORMS, vol. 24(5), pages 2685-2702, September.
    19. Sun, Luoyi & Hua, Guowei & Cheng, T.C.E. & Wang, Yixiao, 2020. "How to price 3D-printed products? Pricing strategy for 3D printing platforms," International Journal of Production Economics, Elsevier, vol. 226(C).
    20. Jan A. Van Mieghem, 2003. "Commissioned Paper: Capacity Management, Investment, and Hedging: Review and Recent Developments," Manufacturing & Service Operations Management, INFORMS, vol. 5(4), pages 269-302, July.
    21. Tava Lennon Olsen & Brian Tomlin, 2020. "Industry 4.0: Opportunities and Challenges for Operations Management," Manufacturing & Service Operations Management, INFORMS, vol. 22(1), pages 113-122, January.
    22. Jan A. Van Mieghem & Nils Rudi, 2002. "Newsvendor Networks: Inventory Management and Capacity Investment with Discretionary Activities," Manufacturing & Service Operations Management, INFORMS, vol. 4(4), pages 313-335, August.
    23. Westerweel, Bram & Basten, Rob J.I. & van Houtum, Geert-Jan, 2018. "Traditional or Additive Manufacturing? Assessing Component Design Options through Lifecycle Cost Analysis," European Journal of Operational Research, Elsevier, vol. 270(2), pages 570-585.
    24. Jing-Sheng Song & Geert-Jan van Houtum & Jan A. Van Mieghem, 2020. "Capacity and Inventory Management: Review, Trends, and Projections," Manufacturing & Service Operations Management, INFORMS, vol. 22(1), pages 36-46, January.
    25. Yimin Wang & Scott Webster, 2022. "Product Flexibility Strategy Under Supply and Demand Risk," Manufacturing & Service Operations Management, INFORMS, vol. 24(3), pages 1779-1795, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nie, Jiajia & Xu, Xiaoxuan & Yue, Xiaohang & Guo, Qiang & Zhou, Yu, 2023. "Less is more: A strategic analysis of 3D printing with limited capacity," International Journal of Production Economics, Elsevier, vol. 258(C).
    2. Sun, Mingyao & Ng, Chi To & Yang, Liu & Zhang, Tianhua, 2024. "Optimal after-sales service offering strategy: Additive manufacturing, traditional manufacturing, or hybrid?," International Journal of Production Economics, Elsevier, vol. 268(C).
    3. Lingxiu Dong & Duo Shi & Fuqiang Zhang, 2022. "3D Printing and Product Assortment Strategy," Management Science, INFORMS, vol. 68(8), pages 5724-5744, August.
    4. Jan A. Van Mieghem, 2007. "Risk Mitigation in Newsvendor Networks: Resource Diversification, Flexibility, Sharing, and Hedging," Management Science, INFORMS, vol. 53(8), pages 1269-1288, August.
    5. Ebru K. Bish & Qiong Wang, 2004. "Optimal Investment Strategies for Flexible Resources, Considering Pricing and Correlated Demands," Operations Research, INFORMS, vol. 52(6), pages 954-964, December.
    6. Tanrisever, Fehmi & Morrice, Douglas & Morton, David, 2012. "Managing capacity flexibility in make-to-order production environments," European Journal of Operational Research, Elsevier, vol. 216(2), pages 334-345.
    7. Kim, Nayeon & Montreuil, Benoit & Klibi, Walid & Zied Babai, M., 2023. "Network inventory deployment for responsive fulfillment," International Journal of Production Economics, Elsevier, vol. 255(C).
    8. Marić, Josip & Opazo-Basáez, Marco & Vlačić, Božidar & Dabić, Marina, 2023. "Innovation management of three-dimensional printing (3DP) technology: Disclosing insights from existing literature and determining future research streams," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    9. Robert A. Shumsky & Fuqiang Zhang, 2009. "Dynamic Capacity Management with Substitution," Operations Research, INFORMS, vol. 57(3), pages 671-684, June.
    10. J. Prince Vijai, 2021. "Production network, technology choice, capacity investment and inventory sourcing decisions: operational hedging under demand uncertainty," OPSEARCH, Springer;Operational Research Society of India, vol. 58(4), pages 1164-1191, December.
    11. Fernando Bernstein & Gregory A. DeCroix & Yulan Wang, 2007. "Incentives and Commonality in a Decentralized Multiproduct Assembly System," Operations Research, INFORMS, vol. 55(4), pages 630-646, August.
    12. Achal Bassamboo & Ramandeep S. Randhawa & Jan A. Van Mieghem, 2010. "Optimal Flexibility Configurations in Newsvendor Networks: Going Beyond Chaining and Pairing," Management Science, INFORMS, vol. 56(8), pages 1285-1303, August.
    13. Jan A. Van Mieghem, 2003. "Commissioned Paper: Capacity Management, Investment, and Hedging: Review and Recent Developments," Manufacturing & Service Operations Management, INFORMS, vol. 5(4), pages 269-302, July.
    14. Nagarajan Sethuraman & Ali K. Parlaktürk & Jayashankar M. Swaminathan, 2023. "Personal fabrication as an operational strategy: Value of delegating production to customer using 3D printing," Production and Operations Management, Production and Operations Management Society, vol. 32(7), pages 2362-2375, July.
    15. Bish, Ebru K. & Suwandechochai, Rawee, 2010. "Optimal capacity for substitutable products under operational postponement," European Journal of Operational Research, Elsevier, vol. 207(2), pages 775-783, December.
    16. Van den Broeke, Maud M. & Boute, Robert N. & Van Mieghem, Jan A., 2018. "Platform flexibility strategies: R&D investment versus production customization tradeoff," European Journal of Operational Research, Elsevier, vol. 270(2), pages 475-486.
    17. Sun, Luoyi & Hua, Guowei & Cheng, T.C.E. & Teunter, Ruud H. & Dong, Jingxin & Wang, Yixiao, 2023. "Purchase or rent? Optimal pricing for 3D printing capacity sharing platforms," European Journal of Operational Research, Elsevier, vol. 307(3), pages 1192-1205.
    18. Jose M. Framinan & Paz Perez-Gonzalez & Victor Fernandez-Viagas, 2023. "An overview on the use of operations research in additive manufacturing," Annals of Operations Research, Springer, vol. 322(1), pages 5-40, March.
    19. Hyun-Soo Ahn & Rhonda Righter & J. Shanthikumar, 2005. "Staffing decisions for heterogeneous workers with turnover," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 62(3), pages 499-514, December.
    20. Li, Wei & Sun, Hui & Tong, Meng & Mustafee, Navonil & Koh, Lenny, 2024. "Customizing customization in a 3D printing-enabled hybrid manufacturing supply chain," International Journal of Production Economics, Elsevier, vol. 268(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:286:y:2025:i:c:s0925527325001355. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.