Challenge Resources:

• Print Farm Franchise Order Data (Excel Spreadsheet; download & use)

Scenario: January 1st, 2030. A month ago, you applied for and were approved as a "Level 1 Amazon Basics Distributed AM Supplier" for Amazon's new "Same-Day Print & Ship" program, with your contract officially starting this year(2030). You are taking on the role of a contracted supplier and distributor of Additively-Manufactured goods to Amazon customers. The scope of your contract is as follows:

• You must 3D-Print and deliver products on a daily basis for Amazon customers within your assigned area - a 10-mile-radius from where you live.

• Economics:

  • As a part of your contract, you are given a start-up fund of $25,000 to purchase any/all necessary start-up equipment. Ignore shipping times (but not costs!), and assume you took the month of December 2029 to receive and put together your setup

  • Assume all indirect costs of vehicle mileage, packaging, insurance, electricity, raw materials for printing, etc. are written into your contract and paid for by Amazon. Also assume the delivery of all the products takes 1/hour per day

  • Over the course of the year, you must at least make enough money to at least return 150% of Amazon's initial $25,000 investment, for a total of $37,500 - you can profit only 25% of gross product sale price made with every product sold until the $50,000 is paid in full, after which you profit 75% of gross product sale price made with every product sold (Amazon takes the other 25%)

• Product Specifications:

  • Products made using FDM 3D Printers

  • Products can be made out of either ABS, PETG, TPU, or Nylon. For each material, 

  • Products come in various size/weights and the gross sale price of each product correlates to its mass, with each product costing $50/kg (for PETG), $60/kg (for TPU), $70/kg (for ABS), and $80/kg (for Nylon)

  • Assume each product (regardless of quantity/size/mass) takes no longer than half a day to print/printer, and you deliver the parts sometime during the other half of the day

• Space Constraints:

  • Due to your current living situation, you must (safely) fit all your AM equipment in a 1.25m x 2.5m closet within your apartment/condo, which has x2, 120V electrical outlets inside, each on their own, 20A circuit

Activities/Analysis: For this scenario, draft up a plan and the projected results of your plan for the year-long contract, potentially including:

• Setup:

  • 3D Printer Selection:

    • What are the top 3D printer models suitable for your needs considering budget, size, and material compatibility?

    • How many printers can you afford and accommodate within the space and budget constraints?

    • Will you focus on a single printer model for uniformity or a mix for versatility?

  • Additional Equipment:

    • What ancillary tools and equipment are essential for post-processing?

    • What storage solutions will you need for raw materials and finished products?

    • Do you need any software for design and printer management?

  • Print Farm Setup:

    • How will you arrange the printers and equipment within the limited space for efficiency and safety?

    • What ventilation or temperature control measures are needed?

    • How will you manage power distribution to avoid overloading the circuits?

  • NOTE: Remember, you've got only $25,000 for initial setup! 

• Economics:

  • Monthly Earnings:

    • Based on your printing capacity, how many products can you produce and sell each month?

    • Calculate your monthly revenue based on the different materials and product weights.

  • Payback Period:

    • How many months will it take to reach the $37,500 target to repay Amazon's investment? Remember to consider the changing profit percentage before and after repaying the initial investment!

  • Personal Income:

    • What will your monthly income be during the initial and latter phases of the contract?

    • How will this income fluctuate based on production capacity and sales?

    • How much are you making every month (of the 13-month year)?

• Logistics (Operation/Management):

  • Operational Efficiency:

    • Will you automate any part of the process (e.g., automated removal of finished products)?

    • How will you manage the scheduling of printing to maximize output?

  • Management Strategies:

    • How will you track inventory, orders, and deliveries?

    • What system will you use for maintenance and troubleshooting of equipment?

• Work-Life:

  • Time Commitment:

    • Estimate the daily and weekly time commitment for printing, post-processing, and delivery.

    • How many days per week are feasible for sustained operation?

    • Based on the profits you're making, do you need additional income? If so, how does this add constraints to your time availability and overall sustainability?

  • Total Annual Hours:

    • Calculate the total hours you'll work in a year based on your daily and weekly schedules.

  • Hourly Pay Rate:

    • Divide your total projected annual income by the total hours worked to find your effective hourly rate.