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If customers are willing to tolerate longer lead time (response time), we should decentralize assets in...

If customers are willing to tolerate longer lead time (response time), we should decentralize assets in the supply chain (e.g. facilities, inventories) as much as possible. T/F

Business   Operations-Management   
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Answer #1

The supply chain management can be either centralized or decentralized. In centralized approach, the production and supply will be centralized which may require a longer lead time or response time. In a decentralized approach the production and supply for each plant will be separate and the response time will be less.

A shorter lead time can make the customer satisfied and hence the decentralized approach can make the customers more satisfied. Here if the customer is ready to wait for longer lead time, then the operations can make the process centralized instead of making it decentralized.

Hence the answer is false.

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