1. What are the characteristics of “vertically integration?” How does having a vertically integrated orientation affect the levels of various types of inventories?
2. What possible reasons for Micro fuses high inventory levels other vertically integration than may exist? How would these reasons be affected by increasing the level of outsourcing within Micro fuses operations?
3. How does one define “limited outsourcing strategy” stated by Tom Cecil in the memo? Discuss the issue on both tactical and strategic levels.
4. What kind of picture can be created by analyzing the description of Microfuse’s global operations? How would the trend of relocating manufacturing functions to the Asia region influence Microfuse’s operations?
5. What is the deference between outsourcing and offshoring? What are the advantages and disadvantages of each in regard to Micro fuses case?