Respond to each of the following questions in 260-word count content.
Q1. A strategy that companies implement to control their supply chain and reduce cost is vertical integration. Vertical Integration is where a company owns and/or acquires most or all of its supply chain. For example, a concrete company that owns the material pits where the aggregate comes from, the trucks transport the material to the plant where all of the materials are mixed into concrete. They also own and operate the trucks to deliver the mixed concrete to the end-user. In addition typical they sell to their competitor’s raw materials, i.e. aggregate and cement power, which adds another dimension and advantage, so when we correlate this to lean, supply chain optimization, and the different business aspects what are the ramifications for the company?
Q2. We can account for some increases “of doing business” in the airline industry because of changes in the domestic and international economies but are some increases the result of the companies creating/ reducing the supply of seats and routes as the demand remains or increases, causing prices to rise, simple supply and demand.
