Vertical Integration

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The sales and operations can be integrated through two ways. The first way is known as horizontal sales and operation integration and second way is the vertical sales and operation integration. In the horizontal integration, the integration process is carried out by managing capacity, priority and demand. The capacity management deals with the resources, which are need for the production process. Capacity management provides the details about how much resources are available or required to produce the product. In priority management the demand and supply is balanced and resources are prioritized. In demand management, the detail of the demand of the product is analyzed and managed so that production can be done according to the demand. In vertical

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