This document introduces work package two (WP2) which focuses on advanced manufacturing and after sales service supply chain design. WP2 will examine strategic supply chain design decisions like the optimal number of echelons, resource positioning, and resource allocation while accounting for costs and demand. It will also analyze more technical aspects like minimal repair and level of repair analysis. WP2 will build upon work from package one on product and process characteristics and work with package three on inventory theory evaluation. An example problem presented is a facility location model to determine when and where to invest in additive manufacturing technology for spare parts production over time. The results of this model would depend on the input parameters and specify uncertainty in additive manufacturing development.

1. Introduction to work package two
(WP2)
Advanced manufacturing and after sales service supply chain
design
Bram Westerweel

2. Agenda
• Introduction to after sales service supply chain design
• Basic characteristics
• Relationship to WP1 & WP3
• Work package two within SINTAS
• Example of a problem instance
• Additional topics
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3. Brief introduction
• About me:
• BSc in mechanical engineering (Fontys hogescholen, 2011)
• MSc in operations management and logistics (TU/e, 2014)
• PhD (2015-2019)
• Promotor: Prof. Dr. Ir. Van Houtum
• Daily supervisor: Dr. Ir. Rob Basten
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4. Introduction to supply chain design
• Supply chain design typically deals with strategic decisions:
= installed base
How many echelons?
Where to position resources?
What resources at each echelon level?
Taking into account:
- Investment costs
- Transportation costs
- Demand for spare parts
- Etc.
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5. Introduction to supply chain design
• More technical aspects may
also be tackled:
• Performing minimal repair
• Level of repair analysis
= installed base
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6. Relationship to WP1 & WP3
• WP1:
• What to expect in terms of future development?
• Important process and product characteristics
− Throughput times, failure behavior
• WP3:
• Inventory theory is necessary for evaluation of WP2 models
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7. Example problem instance: Facility location problem
• Model description
• Existing after sales supply chain
infrastructure
• Decision support for:
• When and where to invest in AM
technology
• Specific to this problem:
• Number of components suitable for
AM production grows over time
Technology
Time
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8. Facility location problem (II)
• Problem results in a mixed-integer linear program. Decision variables
are:
• Open a facility for AM (location and timing)
• Production quantity via regular and AM
• Shipment quantities between locations
• Robust optimization is employed to come up with a robust model
• Specify the uncertainty region for the development of AM
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9. Model results
• Results would be strongly dependent on model input
Decentralized Centralized
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10. Additional topics
• Additive manufacturing presents new topics to explore:
How many echelons?
Where to position resources?
What resources at each echelon level?
Taking into account:
- Investment costs
- Transportation costs
- Demand for spare parts
- Etc.
Effect on LRU’s
Repair locations
3rd party involvement
Time of investment
Minimal repair /
temporary replacement
Requires additional info:
- Failure behavior of
components
- Cost and process
characteristics
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11. Rounding up
• WP2 offers several very interesting topics to explore
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