1.facilities are the actual physical location in the supply chain network where product is stored assembled or fabricated the tow major types of facilities are production sites and storage sites Decisions regarding the role location capacity and flexibility of facilities have a significant impactb on the supply chain is performance For example in 2009 Amazon increased the number of warehousing facilities (observe increase in property, plan and equipment, in table 3-1) located close to customers to improve it is responsiveness.