Vertical integration may afford flexibility in responding to uncertain demand when:
A)The firm has built a capability to respond speedily in a coordinated fashion
B)The firm maintains spare capacity, and can bear spare capacity
C)The market cannot respond as quickly, or capacity is unavailable
D)All of the above

Question

Quizplus · Accepted Answer

Vertical integration can afford flexibility in responding to uncertain demand when the firm has built a capability to respond speedily in a coordinated fashion, maintains spare capacity and can bear spare capacity, and the market cannot respond as quickly, or capacity is unavailable. Therefore, all of the options mentioned in the choices are correct.

Vertical Integration May Afford Flexibility in Responding to Uncertain Demand