Which of the following terms refers to a supply chain management approach that attempts to gain a high degree of integration across the chain without compromising independent ownership?
Which of the following terms refers to a supply chain management approach that attempts to gain a high degree of integration across the chain without compromising independent ownership?
Virtual integration refers to a supply chain management approach where different entities such as suppliers, manufacturers, distributors, and retailers collaborate closely and share information and processes. This allows for a high degree of coordination and efficiency without compromising the independent ownership of each entity within the supply chain.
Virtual integration is a concept where different entities in the supply chain, such as suppliers, manufacturers, distributors, and retailers, collaborate closely and share information and processes to achieve greater coordination and efficiency.
The term that refers to a supply chain management approach that attempts to gain a high degree of integration across the chain without compromising independent ownership is virtual integration. This is mentioned in M6, where virtual organizations are defined as short-term alliances between independent organizations in a potentially long-term relationship to design, produce, and distribute a product. Organizations cooperate based on mutual values and act as a single entity to third parties. Therefore, option D is the correct answer.