Supply Network Centralization

Abstract

Abstract In supply networks, centralization is related to how much authority or power is concentrated or dispersed across the supply network. If the decision‐making authority in a supply network is mainly concentrated on a single supply network member, the supply network is said to be centralized. Conversely, if the decision‐making authority is distributed among supply network members, the supply network is said to be decentralized. The decision‐making process can regard different processes such as product engineering, production planning, order replenishment, or forecasting activities.