Question & Answer: Which of the following supply-chain strategies creates value by allowing suppliers to have economies of…

Which of the following supply-chain strategies creates value by allowing suppliers to have economies of scale? Suppliers becoming part of a company vertical integration strategic partnership with a few suppliers negotiating with many suppliers

Expert Answer

Vertical integration is the strategy where supply chain produces different product or services and the supply chain is owned by the company.Company expand its business operations on same production path by following different steps which will reduce cost and efficiency will be improved by decreasing transportation expenses and turnaround time and it will help the company in establishing economies of scale.

So,option B is the answer

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