This text provides informative, short introductions to the core concepts of Operations Management. This text contains more than 50 concept entries and is fully cross-referenced.An outstanding reference for Operations Management students at all levels. 



Outsourcing decisions are concerned with whether or not to retain in house some operations. The alternative is to subcontract these operations and to manage the business relationship with the supplier so that performance is improved.

Outsourcing Activities

Should a firm try to own and control all aspects of a production value chain, or should it attempt to concentrate on one specific task within this value chain? Vertical integration refers to the extent to which a firm participates in all the transformation stages of a product. For example, a firm which involves itself with the extraction of raw materials, primary transformation, manufacturing, distribution and commercialisation is completely vertically integrated. Historically, manufacturing firms have been heavily vertically integrated and have gone through a phase of gradually outsourcing, i.e. ...

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