Final answer:
Supply chain strategy involves long-term decisions that affect a company's efficiency and response to the market, such as warehouse capacity and inventory management. Decisions are influenced by factors like goods' nature, transport networks, technology, and labor policies.
Step-by-step explanation:
The supply chain strategy includes long-term decisions related to the design and management of the entire supply chain. Such decisions have a profound impact on both the operational efficiency and the market responsiveness of the company. When considering options like the size of the warehouse in Kokomo, we are discussing the capacity planning and physical inventory aspect of supply chain management. The decision about how large the warehouse should be can be influenced by several factors including the types of goods stored (durable vs. nondurable), proximity to transport networks, advancement in technology, and labor policies, all aiming at cost-effectiveness and efficiency.