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Product Layout - Disconnected Flow
any products or components (eg toys, shoes, many electronic components) are required in volumes which do not justify continuous operation, but are part of a family of items which have identical process sequences. In this case it may be economically feasible to install a production line, comprising the required processes laid out in sequence, with spaces between processes to accommodate work-in- progress inventory.
This arrangement, disconnected-flow (see figure below), has higher unit costs than connected-flow systems, but, by virtue of the work-in-progress provision, is less vulnerable when a single process breaks down. Another notable feature of this arrangement is that, at any instant, it is likely that one section of the line is processing a batch of one member of the product family, whilst other sections are working on batches of other members.
Horizontal integration has benefits to the firms involved. Consider the consolidation in the event-promotion business when Live Nation bought Ticketmaster in 2010. List some spec
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