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Amacon is a bicycle manufacturer that produces approximately 5,000 bikes each month

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Question;Amacon is a bicycle manufacturer that produces approximately 5,000 bikes each month. In order to meet that demand, Amacon needs 10,000 rubber tires at its assembly plant on the last Thursday of each month. Please explain the answers to the following questions.a. What would be the pros and cons of using spot exchange to obtain the tires?b. What would be the pros and cons of using a contract to obtain the inputs?c. What would be the pros and cons of vertically integrating to obtain the tires?

 

Paper#56668 | Written in 18-Jul-2015

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