global supply chains

Question 1

vertical in house production

Answer 1

• where the company owns its supply chain
• minimises dependency on external suppliers

Question 2

advantages of vertical in house production

Answer 2

• reduced risk of component prices changing
• less impacted by suppliers going out of business
• protects brand
• improved security of IP rights
• QA easier to implement

Question 3

disadvantages of vertical in house production

Answer 3

• specialisation is reduced, potentially diluting expertise
• increased administration
• reduced flexibility

Question 4

production, planning and control (PPC)

Answer 4

• computers used to plan and control production and coordinate suppliers
• an efficient supply chain network is vital to ensure the flow of materials, which is especially useful for JIT production