Which of these is a disadvantage of a chained network configuration? The fixed cost of building several

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Which of these is a disadvantage of a chained network configuration?

The fixed cost of building several small chains far exceeds the cost of building a single long chain.

They are effective when dealing with supply disruptions but ineffective when confronted with demand fluctuations.
They are incapable of producing the products they are designed for.
The effect of any fluctuation ripples to all facilities in the chain.

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