Analyzing the Impact of Metal Additive Manufacturing on SMEs Supply Chains Through Localization Optimization

Metal Additive Manufacturing (MAM) presents significant opportunities for enhancing supply chain resilience, yet its full potential remains unexplored. This paper focuses on small and medium-sized enterprises (SMEs) in Norway, assessing the feasibility of investing in MAM for distributed production. The paper proposes a multi-objective optimization model to identify optimal location distribution and estimate the cost-effectiveness of metal material extrusion, considering factors such as cost, lead times, and production plant allocation. The application of the model reveals a set of optimal locations for distributed manufacturing across Norway, as visualized in the Pareto front, highlighting trade-offs between cost and lead time. This investigation addresses a key research gap by examining the influence of supply chain location on investment decisions in decentralized MAM, as well as the impact of MAM adoption on delivery times, from an empirical standpoint. This study advances understanding of the interplay between MAM, facility location optimization, and their effects on SME supply chains, and lays the foundation for more comprehensive future research incorporating factors like environmental impact. Consequently, the research represents a significant step towards a holistic decision-support framework for SMEs aiming to capitalize on MAM technology benefits.