Which is a potential impact of 3D printing on the finance function?

Which is a potential impact of 3D printing on the finance function?

• A. Direct costs increased - allocated to specific jobs
• B. Cost savings due to waste reduction
• C. No overproduction as exact numbers are produced
• D. Increased inventory of raw materials is required

Answer: (C)

On-demand production is the key idea. 3D printing enables making items in exactly the quantities needed, when they’re needed, rather than in large batches. That reduces overproduction and the associated waste, which the finance function cares about because it lowers finished-goods inventory and frees up cash. In essence, output is better matched to actual demand, improving working capital and cost control. While waste reduction can help, the strongest finance impact is the ability to avoid excess production. The other options imply outcomes that don’t align as directly with how 3D printing reshapes inventory and capital use.

On-demand production is the key idea. 3D printing enables making items in exactly the quantities needed, when they’re needed, rather than in large batches. That reduces overproduction and the associated waste, which the finance function cares about because it lowers finished-goods inventory and frees up cash. In essence, output is better matched to actual demand, improving working capital and cost control. While waste reduction can help, the strongest finance impact is the ability to avoid excess production. The other options imply outcomes that don’t align as directly with how 3D printing reshapes inventory and capital use.