When a manufacturer starts to open stores to directly reach customers, the manufacturer is integrating _____________ on the supply chain.
A) Backward
B) Forward
C) Left
D) Right
E) None of the above

Question

Quizplus · Accepted Answer

When a manufacturer opens stores to directly reach customers, it is moving forward on the supply chain, as it is closer to the end-consumer. Forward integration involves a company taking control of the distribution and/or retailing of its products, whereas backward integration involves a company taking control of its suppliers. The options C and D are irrelevant, and option A is incorrect as opening stores is not an example of backward integration. Therefore, the correct answer is B.

When a Manufacturer Starts to Open Stores to Directly Reach