PRODUCE OR PURCHASE, THAT IS THE QUESTION: THE DILEMMA OF VERTICALIZATION IN MANUFACTURING
DOI:
https://doi.org/10.13058/raep.2015.v16n4.386Keywords:
Supply Chain Management, Decision Making, VerticalizationAbstract
Positivo Implementos Rodoviários is a road equipment company located in the city of São Cristóvão, near a major metal/mechanic cluster in southern Brazil. Márcio has been the company’s Head of Sales for some time and has noticed a drop in sales, in addition to a stream of complaints about quality and delivery delays. Márcio figured out that some critical production factors had a direct impact on the company’s sales department, since a part of the production process is outsourced. This is the context within which this case study proposes a reflection on the problems experienced by a road equipment company and its operations based on the vertical integration approach to its supply chain, with a focus on the question: produce or purchase? The case was developed for use in undergraduate management courses, such as in Operations Management, Materials Management and Business Logistics.Downloads
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