If Wal-Mart Were to Purchase a Factory to Make Socks

question 74

True/False

If Wal-Mart were to purchase a factory to make socks and it planned to sell these socks in its stores, this would be an example of forward vertical integration.

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Definitions:

Process-layout Planning

The arrangement of physical facilities such as machinery and equipment within a factory to optimize workflow.

Material Handling Costs

Expenses incurred in the movement, protection, storage, and control of materials throughout the manufacturing process.

Fixed-position Layout

A layout design where the product remains stationary and workers, materials, and equipment are moved as needed to the product’s location, often used for large or bulky items.

Highway Tunnel

A type of road passage that runs underneath an obstacle or terrain feature, such as a mountain, water body, or city.