Final answer:
True, decisions regarding the role of each facility affect supply chain flexibility in meeting demand changes.
Step-by-step explanation:
Decisions concerning the role of each facility are significant because they determine the amount of rigidity the supply chain has in changing the way it meets demand. The statement is true. Decisions on production levels, introduction of new technologies, and responses to competitors’ actions all contribute to the flexibility or inflexibility of a firm's output. For instance, if Firm A decides to expand output regardless of whether a competing firm B holds down or raises output, it indicates a strategic decision that affects the entire supply chain's ability to adapt to demand fluctuations. Similarly, Firm B’s decisions in response to Firm A’s actions also have significant implications for its supply chain flexibility.