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Q. Explain about the vertical integration?
Backwards vertical integration a firm integrating backwards into its supply chain, the supplier included in a previous and a various stage of production or supply as an example, Ford Motor Company merging along with a car component supplier or manufacturer.
Forwards vertical integration a firm integrating forwards into its supply chain within the next and a various stage of production or supply, closer to its eventual customer as an example Ford Motor Company merging along with a car dealership for example, car retailer.
A company is considering a gear assembly that it now purchases from company B. Company B charge $4 per unit with a minimum order of 3000units. Company A estimates that it will cost
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