Network design decisions have a significant impact on performance because they
A)determine the customer demand.
B)determine the supply chain conflagration.
C)set constraints within which inventory,transportation,and information can be used to either decrease supply chain cost or increase responsiveness.
D)set constraints within which inventory,transportation,and information can be used to either increase supply chain cost or decrease responsiveness.

Question

Quizplus · Accepted Answer

Network design decisions set the constraints within which inventory, transportation, and information can be used to optimize supply chain performance. By designing an efficient network, companies can decrease supply chain costs while increasing responsiveness. Therefore, option C is the correct answer. Option A is incorrect because while customer demand can influence network design decisions, it is not the sole determinant. Option B is incorrect because supply chain conflagration is a vague term that does not reflect any significant impact on performance. Option D is incorrect because an increase in supply chain costs would not result in improved performance.

Network Design Decisions Have a Significant Impact on Performance Because