Capacity allocation decisions have a significant impact on supply chain performance because they tend to stay in place for several years.

Question

Quizplus · Accepted Answer

Capacity allocation decisions involve investments in physical assets, such as factories, warehouses, and equipment. These investments are difficult to reverse and tend to have a long-term impact on supply chain performance. As a result, companies need to carefully consider the long-term implications of their capacity allocation decisions to ensure they align with their overall strategy and goals.

Capacity Allocation Decisions Have a Significant Impact on Supply Chain