161k views
0 votes
_________ is a business strategy in which a company purchases its upstream suppliers to ensure that its essential supplies are available as soon as the company needs them.

The bullwhip effect

Vertical integration

JIT

VMI

User Grosser
by
7.1k points

1 Answer

4 votes

Answer:

Vertical Integration

Step-by-step explanation:

Vertical Integration is a business strategy in which a company purchases its upstream suppliers to ensure that its essential supplies are available as soon as the company needs them. This enables the business to exercise higher control over supply related uncertainties and to optimize supplies based on changing demand or business priorities.

An example can be a textile manufacturer purchasing a dye manufacturing unit.

User Jorn Vernee
by
8.4k points