Apple Supply Chain Case Study In this assignment, you will read a case study and answer the following questions: 1. In your own words, exp nazon's supply chain methodology. 2. A. What are some of Apple Inc's supply chain's biggest challenges? 8: How would you resolve or undertake these challenges? 3. A. Why are Amazon's Supply Chain Characteristics more complicated than those of Apple's? B: How would you reconcile these complications? Please follow the instructions below: Download the case study here. 1. You will submit a MINIMUM 2 page paper (single-spaced) that answers the questions above. 2. You will have three weeks to work on this assignment. 3. This is an individual assignment. Collaboration between students is prohibited and is treated as a violation of academic integrity. Notes for grading: . All questions' available grades are equally distributed. An answer without detailed explanation will get no more than 1 point out of . Turnitin will be used to detect any plagiarism for this assignment. S Apple Supply Chain Really the No: 17 analyses that we conduct to capture the essence of Apple Supply Chain. Apple Supply Chain Excellence Apple Map or even the environmental and labor issues at its spontane facilities. Surprisingly, IT research firm Gartner ranks the supply chain of Apple Inc a the best supply chain in the world for many years. Without a doubt, Apple Inc is the Apple's Supply Chain really the number 1? This case will show you the analysis of theis core processes, challenging issues, and complexities of its operations. * Stores Chinay Facility in Direct Sale Force Apple Inc purchases raw materials from various international sources, then get them directly to consumers (via UPS/FedEx) for those who buy from Apple's Online Store." For other distribution channels such as retail stores, direct sales, and other distributors Apple Inc will keep products in Elk Grove, California (where central warehouse and cal customer can send products back to the nearest Apple Stores or dedicated meeting facilities. Apple tries to follow the lean manufacturing concept as much as possible bu not six sigma as used by Samsung. Apple Supply Chain Challenges workat does it feel like to be "Apple Inc ? One journalist indicated that very high risks. There are many challenges to overcome, for example, Sonal economy could affect the Company sellers may also dist oducts from the competing manufacturers. from the single or limited sources. to the rest of the industry. ies is important. id man-made disasters can be serious. - The company also relies on its dhere to supplier code of conduct. The above information is also from the annual report. As you can see, most of the risks are on the supply side. How Complex is Apple Supply Chain? complicated. So this section will explain some characteristics of Apple through various metrics and compare them with Amazon Supply Chain. 1. Inventory Turnover a traditional financial measure to determine how efficient compan Inventory Turnover is a traditional financ chain professionals also use this metric in the inventory management function generally accepted calculation is [Cost of Goods Sold / Average Inventory] Amazon Apple 59 Inventory Turnover of Amazon vs Apple Inc The above picture shows that the inventory turnover of Amazon and Apple is 10 and 59 From the face value , Apple seems to be more efficient. Anyway, there is a reason for manufacturing facility, but Amazon is a distributor of general merchandise . It's pretty natural that Amazon has to keep more locks. Then the inventory turnover is much lower. Supply chain management is about the relationship between trading partners. Working closely with strategic suppliers will bring a competitive advantage to the firm. O Amazon (300k) Apple (156) Number of Key Vendors Amazon vs Apple at they have about 156 key ver cross the globe. This Top 5% of this is 300,000 suppliers, way more than that of Apple Inc. 3. Number of Warehouse Facilities In the United States, transportation cost is the biggest porti ood management of related function is essential tion of the total logistics cost. Amazon (28) Apple (1) Number of Warehouse Facilities Amazon is Apple Apple Inc has the central wereso what Apple has to do is to synchronize data ely 20 automation, this kind of operations can be done efficiently. many Ph.D. graduates in operations management, operations research and industri engineering for the network design project. The reason is that Amazon's distribution hey have to determine how many facilities they should have, where serves which warehouse-to-warehouse and warehouse to customers in order to minimize cost and increase service level. 4. Number of Items (Stock Keeping Unit) model of the phone but different software inside is considered a different item/SKU Amazon (135 million Apple (26k) Number of SKU's Amazon vs Apple Amazon has about 519 million items in its catalog. About 135 million items are physical The point is that if you have to make a demand forecast, which one will more difficult for you, 135 milion items or 26k items. 5. Product Life Cycle better). Put it simple way, the product lifecycle is how long you can sell products (the longer is Amazon Apple (3months) (12months) Product Life Cycle Amazon vs Apple From the rough estimate, Amazon has some seasonal products such as summer wear than 12 months. It goes without saving that the demand forecast of seasonal, short life cycle products is very difficult to estimate, more complicated than that of Apple Inc. haracteristics, Amazon's Supply Chain is far Lesson Learned from Apple Supply Chain The results of the analysis of Apple's processes, challenging issues, and complexities indicate that the success of its supply chain operations depends on in new product development, close communication, and supplier performance improvement/evaluation. Then, Apple Inc is dubbed as "King of Procurement.&quot