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Production-Operations Management_Week 13 Discussion (1)

Production-Operations Management_Week 13 Discussion (1)

Q Is vertical integration good for a business? If yes, why?

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It is good for a business to integrate vertically and be supply chain of their own taking the trade-offs stated below into consideration: ? Cost – It makes sense for a firm by vertical integration when it wishes to decrease production cost over long term. ? Quality – Sense is made by vertical integration for a firm when more control is wanted to be held over controls of quality in production.