Network design decisions have a significant impact on performance because they determine the supply chain configuration and set constraints within which the other supply chain drivers can be used either to decrease supply chain cost or to increase responsiveness.

Question

Quizplus · Accepted Answer

Network design decisions such as the number and location of facilities, transportation routes, and inventory positioning can greatly impact the performance of a supply chain. These decisions can affect the flow of materials, lead times, transportation costs, and overall efficiency of the supply chain. The other supply chain drivers such as inventory, transportation, information, and pricing strategies must operate within the constraints set by the network design decisions in order to optimize performance.

Network Design Decisions Have a Significant Impact on Performance Because