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.

Network Design Decisions

Encompasses the strategic choices involved in determining the most efficient and effective layout of a company's logistics, distribution, and supply routes.

Supply Chain Configuration

The arrangement and organization of the network of facilities and distribution options that perform the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers.

Responsiveness

The ability of a system, organization, or individual to quickly react to changes, demands, or opportunities with effective actions.