Final answer:
Centralized supply structure involves decision-making and control concentrated in a single location or authority, while decentralized supply structure distributes decision-making and control among multiple locations or authorities.
Step-by-step explanation:
In terms of supply structures, there are three main types: centralized, decentralized, and hybrid. In a centralized supply structure, all decision-making and control over the supply chain is concentrated in a single location or authority. This means that all decisions regarding production, distribution, and inventory are made by a central authority and implemented across the entire supply chain. A good example of a centralized supply structure is a company with a single headquarters that controls all aspects of its operations.
In a decentralized supply structure, decision-making and control are distributed among multiple locations or authorities. In this case, different units or branches within the supply chain have some level of autonomy and decision-making power. Each unit or branch might have its own production, distribution, and inventory management decisions based on its unique needs and circumstances. A good example of a decentralized supply structure is a franchise network, where individual franchisees have some degree of decision-making power.
A hybrid supply structure, as the name suggests, combines elements of both centralized and decentralized structures. It involves a mix of centralized decision-making and control for some aspects of the supply chain, while allowing for decentralized decision-making and control for other aspects. This allows companies to benefit from the efficiency and consistency of centralized decision-making, while also taking advantage of the flexibility and adaptability of decentralized decision-making.
An example of a hybrid supply structure is a company with a centralized headquarters that sets overall production and distribution goals, but allows regional branches to make decisions about inventory management based on local demand.