An Integrated Supply Chain Network Design for Advanced Air Mobility Aircraft Manufacturing Using Stochastic Optimization

TL;DR

This paper develops a stochastic optimization model for eVTOL aircraft manufacturers to effectively plan their supply chains amidst demand uncertainties, supply disruptions, and market fluctuations, enabling mass production and profit maximization.

Contribution

It introduces the first comprehensive stochastic supply chain planning model tailored for eVTOL manufacturers, addressing unique industry challenges and uncertainties.

Findings

Model outperforms benchmark stochastic models.

Enables mass eVTOL production under disruptions.

Supports profit maximization in uncertain conditions.

Abstract

Electric vertical takeoff and landing (eVTOL) aircraft manufacturers await numerous pre-orders for eVTOLs and expect demand for such advanced air mobility (AAM) aircraft to rise dramatically soon. However, eVTOL manufacturers (EMs) cannot commence mass production of commercial eVTOLs due to a lack of supply chain planning for eVTOL manufacturing. The eVTOL supply chain differs from traditional ones due to stringent quality standards and limited suppliers for eVTOL parts, shortages in skilled labor and machinery, and contract renegotiations with major aerospace suppliers. The emerging AAM aircraft market introduces uncertainties in supplier pricing and capacities, eVTOL manufacturing costs, and eVTOL demand, further compounding the supply chain planning challenges for EMs. Despite this critical need, no study has been conducted to develop a comprehensive supply chain planning model for EMs. To address this research gap, we propose a stochastic optimization model for integrated supply chain planning of EMs while maximizing their operating profits under the abovementioned uncertainties. We conduct various numerical cases to analyze the impact of 1) endogenous eVTOL demand influenced by the quality of eVTOLs, 2) supply chain disruptions caused by geopolitical conflicts and resource scarcity, and 3) high-volume eVTOL demand similar to that experienced by automotive manufacturers, on EM supply chain planning. The results indicate that our proposed model is adaptable in all cases and outperforms established benchmark stochastic models. The findings suggest that EMs can commence mass eVTOL production with our model, enabling them to make optimal decisions and profits even under potential disruptions.