How can AM affect supply chain management?

Additive Manufacturing (AM) can significantly influence supply chain management, particularly through its ability to reduce dependency on global supply chains. This is achieved because AM technologies allow for the production of parts and products closer to the end user. By enabling localized production, companies can manufacture goods on demand, which minimizes the need for extensive inventory storage and reduces reliance on international shipping and logistics.

This localization fosters a more agile supply chain, where companies can react quicker to market changes and consumer demand without the delays associated with shipping from distant suppliers. Furthermore, it can support sustainable practices by lowering the carbon footprint associated with transportation.

The other options suggest implications that do not align with the transformative potentials of AM in supply chain practices. For example, increasing physical inventory contradicts the on-demand production capabilities of AM, complicating distribution logistics does not capture the streamlined processes that AM can create, and simplifying vendor relationships may not be directly relevant as AM could introduce new supplier dynamics. Overall, the correct choice highlights a core benefit of AM in modern supply chain management.