Which of the following is an example of FORWARD integration?
A) a group of farmers decision to form a cooperative to build and operate a roadside market to sell fresh produce.
B) the decision by the owner of a sawmill to buy a large woodlot adjacent to the mill.
C) an auto manufacturer deciding to purchase interior door panels from suppliers rather than manufacturer them internally.
D) a food processing company's decision to enter into long term supply contracts with farmers.

Question

Quizplus · Accepted Answer

Forward integration involves a company moving closer to the end consumer in the supply chain. In this case, farmers forming a cooperative to sell directly to consumers is an example of forward integration.

Which of the Following Is an Example of FORWARD Integration