The Role of Network Design in the Supply Chain Facility location decisions have a long-term impact on a supply chain's performance because it is expensive to shut down a facility or move it to a different location. Capacity allocation can be altered more easily than location, capacity decisions do tend to stay in place for several years The allocation of supply sources and markets to facilities has a significant impact on performance Network design decisions must be revisited as market conditions change or when two companies merge SCM by J.J.Gao SEIEE AU406 4SEIEE AU406 + -  Facility location decisions have a long-term impact on a supply chain’s performance because it is expensive to shut down a facility or move it to a different location.  Capacity allocation can be altered more easily than location, capacity decisions do tend to stay in place for several years  The allocation of supply sources and markets to facilities has a significant impact on performance  Network design decisions must be revisited as market conditions change or when two companies merge 4 SCM by J. J. Gao The Role of Network Design in the Supply Chain