Question

What were the immediate consequences of centralised planning?

Answer 1

What is Centralized Planning?

Centralized planning means that decisions are not taken independently at local level, but holistically at a more central level.

Why optimize Centralized planning?

The advantage is that planners can optimize over multiple locations, and by this, apply synergies, e.g. transport optimization over depots, or improve employee efficiency by reassigning them to another location.  In general it implies that planners are physically at a centralized location, hence not near a location where the production or services take place. It is easier for the planners at a central location to exchange best practices, to increase transparency of the way of working, and increase the span of control. Also in this way unnecessary costs can be avoided (hiring extra employees in one location, while having overcapacity in the other) as well as leveraging in purchasing through the economies of scale.

Answer 2

Unified arranging implies choices are not taken autonomously at nearby level, but rather comprehensively at a more focal level.

The favorable position is that organizers can enhance over different areas and by this, apply cooperative energies.

When all is said in done it suggests that organizers are physically at a brought together area; consequently not close to an area where the generation or administrations occur.