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

question 5

Multiple Choice

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

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Definitions:

Geographic Location

A specific place or position within a physical space that is identified using coordinates or a descriptive address.

Edge Effect

The ecological phenomenon in which ecotones between adjacent communities often contain a greater number of species or greater population densities of certain species than either adjacent community.

Diversity Index

A quantitative measure that reflects how many different types (such as species) there are in a dataset, and simultaneously takes into account how evenly the basic entities (like individuals) are distributed among those types.

Resource Partitioning

The process by which competing species or individuals divide resources among themselves to reduce competition and increase biodiversity.