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.

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

disadvantage?

2. What are at least two reasons to vertically integrate and be your own supply chain, and what is at least one

disadvantage?

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

your reasoning.

Your paper should follow APA guidelines and include references to document the research you did.

Leave a Reply