Asked by Lungile Shange on Jun 06, 2024

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

Capacity Allocation

The process of assigning available resources or production capacity to meet varying demands, crucial for optimizing output and meeting customer needs.

Supply Chain Performance

Involves the assessment of how effectively and efficiently a supply chain operates, often evaluated through metrics such as delivery speed, quality, and cost efficiency.

  • Discern the long-lasting implications of network configuration decisions on the functionality of supply chains.
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RN
Rylan NordbeckJun 10, 2024
Final Answer :
True
Explanation :
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.