In Strategy Narrowcast Server there is one 'Document cache properties' setting for Linked Report Services documents, as shown below:

The options will govern what happens for the grid reports that will utilize/create caches for linked Report Services documents in services depending on the option selected and if a cache is present or not. Consider the following four possible scenarios with a linked Report Services document called 'Test RS Doc' that maps to a Report Services document called 'RS Doc' and what happens with the cache:
Scenario 1:
Use report cache during document execution: Yes
Cache present: No
No cache is present on Strategy Intelligence Server so the dataset report(s) will be executed against the data warehouse and the results will be sent back to Strategy Narrowcast Server. A cache will be created on Strategy Intelligence Server for each individual dataset report(s) in the Report Services document.
Scenario 2:
Use report cache during document execution: Yes
Cache present: Yes
A cache is present on Strategy Intelligence Server, so the dataset report(s) will be retrieved from the cache and the results will be sent back to Strategy Narrowcast Server.
Scenario 3:
Use report cache during document execution: No
Cache present: No
The linked Report Services document is not set to use cache on the Strategy Intelligence Server so the dataset report(s) will be executed against the data warehouse and the results will be sent back to Strategy Narrowcast Server. A cache will be created on Strategy Intelligence Server for each individual dataset report(s) in the Report Services document.
Scenario 4:
Use report cache during document execution: No
Cache present: Yes
A cache is present on Strategy Intelligence Server, however the linked Report Services document is not set to use cache on the Strategy Intelligence Server so the dataset report(s) will be executed against the data warehouse and the results will be sent back to Strategy Narrowcast Server. The existing cache(s) will be updated on Strategy Intelligence Server for each individual dataset report(s) in the Report Services document.