Investigating the feasibility of supply chain-centric business models in 3D chocolate printing: a simulation study

This is the author accepted manuscript. The final version is available from Science Direct via the DOI in this record.3D chocolate printing provides the technology for manufacturing chocolates layer-by-layer, thus offering customers enhanced product value and personalized consumption experience. As business models in the chocolate industry are closely associated with the profitability of the supply chain constituents, it seems appropriate to investigate the financial viability of these supply-chain centric business models prior to their introduction in the real world. In this paper we present two business models pertaining to the supply chain for 3D printed chocolates; we evaluate the financial viability of these innovative models through the use of computer modelling and simulation. The study is based on the commercialization efforts of a UK based 3D chocolate printing technology provider (Choc Edge). The results of the study indicate that 1) the retailer dominant supply chain model is a potentially disruptive business model innovations that are enabled by the 3D food printing technology, and as such, may pose a challenge to traditional high end chocolate products; 2) the manufacturer dominant model helps manufacturers gain more profits while retailer profits tend to be stagnant.We would like to thank the financial support of Chartered Institute of Logistics and Transport (CILT) and the Bridging the gap of EPSRC in the UK and Humanities and Social Sciences Foundation of Ministry of Education in China (Grant number: 14YJC630130)

How will smart city production systems transform supply chain design: a product-level investigation

© 2016 Informa UK Limited, trading as Taylor & Francis Group.This paper is a first step to understand the role that a smart city with a distributed production system could have in changing the nature and form of supply chain design. Since the end of the Second World War, most supply chain systems for manufactured products have been based on ‘scale economies’ and ‘bigness’; in our paper we challenge this traditional view. Our fundamental research question is: how could a smart city production system change supply chain design? In answering this question, we develop an integrative framework for understanding the interplay between smart city technological initiatives (big data analytics, the industrial Internet of things) and distributed manufacturing on supply chain design. This framework illustrates synergies between manufacturing and integrative technologies within the smart city context and links with supply chain design. Considering that smart cities are based on the collaboration between firms, end-users and local stakeholders, we advance the present knowledge on production systems through case-study findings at the product level. In the conclusion, we stress there is a need for future research to empirically develop our work further and measure (beyond the product level) the extent to which new production technologies such as distributed manufacturing are indeed democratising supply chain design and transforming manufacturing from ‘global production’ to a future ‘city-oriented’ social materiality

Techno-economic prospects and desirability of 3D food printing:perspectives of industrial experts, researchers and consumers

3D food printing is an emerging food technology innovation that enables the personalization and on-demand production of edible products. While its academic and industrial relevance has increased over the past decade, the functional value of the technology remains largely unrealized on a commercial scale. This study aimed at updating the business outlook of 3D food printing so as to help entrepreneurs and researchers in the field to channel their research and development (R&D) activities. A three-phase mixed methods approach was utilized to gain perspectives of industrial experts, researchers, and potential consumers. Data were collected from two sets of interviews with experts, a survey with experts, and consumer focus group discussions. The results gave insights into key attributes and use cases for a 3D food printer system, including the techno-economic feasibility and consumer desirability of identified use cases. A business modelling workshop was then organized to translate these results into three refined value propositions for 3D food printing. Both the experts and consumers found personalized nutrition and convenience to be the most desirable aspects of 3D food printing. Accordingly, business models related to 3D printed snacks/meals in semi-public spaces such as fitness centers and hospitals were found to offer the highest business potential. While the technology might be mature enough at component level, the successful realization of such high-reward models however would require risk-taking during the developmental phase

A review of non-cooperative newsvendor games with horizontal inventory interactions

There are numerous applications of game theory in the analysis of supply chains where multiple actors interact with each other in order to reach their own objectives. In this paper we review the use of non-cooperative game theory in inventory management within the newsvendor framework describing a single period inventory control model with the focus on horizontal interactions among multiple independent newsvendors. We develop a framework for identifying these types of horizontal interactions including, for example, the models with the possibility of inventory sharing via transshipments, and situations with substitutable products sold by multiple newsvendors. Based on this framework, we discuss and relate the results of prior research and identify future research opportunities

Identifying Business Potentials of Additive Manufacturing as Part of Digital Value Creation in SMEs – An Explorative Case Study

Additive Manufacturing allows the production of parts based on layer by layer, three-dimensional printing. With a unique set of characteristics, Additive Manufacturing is an important technology regarding the digital transformation and digital value creation of the manufacturing domain. Particularly small and medium sized enterprises are challenged by digital transformation processes and decisions on where to invest their limited resources. This paper identifies business potentials of Additive Manufacturing based on a recent case study conducted during collaborative workshops with five small and medium sized enterprises. Considering the special capabilities of Additive Manufacturing technology, business potentials are examined alongside the entire product lifecycle. It was found that these potentials appear primarily on a digital level and are therefore not limited to the physical domain. The potentials may channel enterprise transformation and enable the purposive generation of digital value

The impact of the industry 4.0 (as a whole) in supply chains

In the business world of today, costumers increasing demands are pushing the companies to take advantage of technology to optimise their operations, products and services. We are now watching live as the Fourth Industrial Revolution takes place built on the ongoing digital revolution. This paper studies the Industry 4.0 and its possible practical applications in the Supply Chain Management. The concepts of Industry 4.0 and Supply Chain 4.0 and its different components will be scrutinised, and potential benefits and future of this trends exhibited. Additionally, an investigation will be conducted to better understand the level of awareness of the current industrial workforce for these ongoing trends

Evaluating the impact of adopting 3d printing services on the retailers

As additive manufacturing technology becomes more responsive to consumers’ demand, one important question for the retailers is whether they should provide 3D printing services in their brick-and-mortar store in addition to the traditional off-the-shelf product? If so, what should be the retailers pricing scheme to achieve a higher profit? What should be the optimal inventory level of off-the-shelf products? What is the optimal capacity of 3D printers? In this study, stochastic models are examined to capture the joint optimal 3D product price and capacity of 3D printers to maximize retailer’s expected profit while considering consumer product choices. Moreover, a stochastic model is developed to capture joint optimal pre-made inventory level and 3D product price to maximize retailer’s expected profit considering 3D services are offered in the off-the-shelf stock-out situations as a one-way substitution. Utilizing the Markov Decision Process, a framework for queuing systems is developed to examine the performance of various production/inventory strategies that optimize the system’s performance. Here, four strategies are developed: (i) providing only off-the-shelf products, (ii) providing only 3D printed products, (iii) substituting the shortage of the off-the-shelf products by 3D printed products, and (iv) providing consumers the options of selecting either the off-the-shelf product or the customized product produced by additive manufacturing. In essence, this approach assists decision makers in both capacity planning and inventory management. For all models, analytical results and numerical examples are given in order to demonstrate managerial insights

PRICING AND INVESTMENT STRATEGY FOR DIGITAL TECHNOLOGY IN A SUPPLY CHAIN

This study addresses the problem of the pricing and investment strategy for smart technology under a supply chain with one manufacturer and one retailer. The models are constructed to investigate the strategic choices of supply chain members for investing in digital/smart technology under three scenarios: the M–system, wherein only the manufacturer fully pays for the investment cost; the S–system, wherein the manufacturer and retailer share the investment cost; and the R–system, wherein the retailer fully pays for the investment cost. We formulate analytical models to determine the optimal wholesale price, retail price and investment strategy in a Stackelberg game setting. Our findings show that the S–system is the most appropriate choice for both the manufacturer and retailer. We also suggest the appropriate investment sharing ratio to achieve Pareto improvement under such an arrangement