Scenario: Hafstrom Motors Based in Kentucky, Hafstrom Motors Has Always Used Spare Parts

Scenario: Hafstrom Motors
Based in Kentucky, Hafstrom Motors has always used spare parts made in America for its automobiles. However, sales and profits have slumped over the past three years. A senior manager at the company comes up with new strategies for improving the firm's production activities.
-The top management of the company contends that Hafstrom would benefit most from manufacturing its own parts,rather than sourcing it from elsewhere,even if they are made at another location overseas.Which of the following is being recommended in this approach?

A) just-in-time manufacturing
B) location economies
C) vertical integration
D) outsourcing

Correct Answer:

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