Economies of Vertical integration: A large firm may decide to have vertical integration by combining a number of stages of production. This integration has the advantage that the flow of goods through various stages in production processes is more readily controlled. Steady supplies of raw materials, on the one hand, and steady outlets for these raw materials, on the other, make production planning more certain and less subject to erratic and unpredictable changes. Vertical integration may also facilitate cost control, as most of the costs become controllable costs for the enterprise. Transport’ costs may also be reduced by planning transportation in such a way that cross hauling is reduced to the minimum.
Latest posts by BMS Team (see all)
- Meterdown Annual Festival is back with its 7th edition – Starts today! - January 16, 2020
- Tybms sem 6 results 2019 declared on 19th June 2019 - June 19, 2019
- TYBMS Sem 6 Results 2019 Update from BMS khabri! - June 15, 2019