Comprehension:

Wooden chair manufacturing is a huge business for families living in the outskirts of Moradabad, Uttar Pradesh. These families, around a hundred in number, have been making wooden chairs for a long time.

Consider two companies A and B. Both are in the business of selling wooden chairs in Delhi.

Company A: Raw wood is sourced and brought straight to its own factory in Moradabad. It is in this factory where wood is converted into an extremely good quality chair.

Company B: It does not have its own factories and outsources the manufacturing process to a couple small family vendors living in and around Moradabad.

Question Sourcing Strategy

Determine which of the companies have higher operational flexibility.

Company A

Company B