Case 5.3 Iphone Mini
In this case, inventory policy constitutes of a standard set of rules and guidelines that offer a company with a framework of achieving more timely and well-founded decisions regarding the stock to purchase or manufacture, the place to distribute to the product customers and the price that the stock will cost (Olsson, 2014).
The inventory policy that we have adopted will strengthen our position in purchasing stock as we have established the volume sales for each stock to assist in buying the appropriate amount. In addition, we will establish the stock that has to be maintained at all times to ensure that supply will always be sufficient. Crucially, maintenance of accurate stock records and having the records match the …show more content…
The marketing approach adopted employs a strategy referred to as the ‘minimum advertised price’. The strategy restricts the resellers and distributors from selling at a price that is lower than the minimum price set. Such will enable the iPhone mini to maintain a premium position in relation to market segmentation over the entire lifecycle of the product.
For the purchasing perspective, the iPhone mini is advantaged by the numerous suppliers that Apple has as they are capable of supplying all the necessary components at the needed amount and at high quality.
Notably, the various processes involved in purchasing the materials for iPhone mini and the associated products will be similar to the rest that Apple has made in the technological industry. Apple will make a pre-payment to secure a warrant of quantity and quality of the essential materials that the suppliers will provide.
Presently, apple has approximately 150 main suppliers and has progressively strengthened the relationships it shares with them. Such is crucial as it offers competitive advantages that the company enjoys in purchasing and supply chain. However, the company has minimized the number of warehouses to one central warehouse that is located in