What are at least two reasons to vertically integrate


Assignment

Case Study: Production Management

Your friend Ben Strong just got a job he was seeking as a production manager for a small manufacturing firm. The company has about 200 employees and produces about $5 million worth of goods a year.

Ben has learned that the previous production manager was let go because of problems managing the supply chain. Some suppliers are delivering late, and some others are having quality problems. Ben is trying to decide whether to continue buying the materials and parts he needs from outside suppliers or to recommend that the firm integrate vertically and supply the materials it needs and produce its own parts.

Ben knows you have been studying production management and respects your advice. Prepare a paper of at least two pages for Ben that addresses the questions below.

o What are at least two reasons to continue with a supply chain of external suppliers, and what is at least one disadvantage?

o What are at least two reasons to vertically integrate and be your own supply chain, and what is at least one disadvantage?

o How would you go about making the decision if you were Ben? Include a recommendation if you have one. Explain your reasoning.

Format your assignment according to the following formatting requirements:

o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.

o The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.

o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.

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Business Management: What are at least two reasons to vertically integrate
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