What type of decision is involved in supply chain strategy?

The choice related to determining the warehouse size is indeed a significant aspect of supply chain strategy. This decision is crucial as it impacts overall supply chain efficiency, inventory management, and the ability to meet customer demand. Finding the appropriate warehouse size involves considerations such as projected sales volume, distribution network optimization, and storage requirements. Additionally, it affects logistics costs, order fulfillment speed, and the flexibility to adapt to market changes, which are vital for a successful supply chain strategy.

The other aspects mentioned, like supplier selection, demand forecasting, and contract negotiation, are crucial operational decisions within supply chain management but are typically part of the broader strategic framework rather than defining it. Each of these decisions has its place and importance in ensuring efficient operations, but the decision regarding warehouse size directly influences the structural capabilities of the supply chain, thus categorizing it as a strategic choice.