Essay about Operation

1357 Words Apr 4th, 2013 6 Pages
Zhenni Lou Option 7:Research Assignment for Operation Management Understanding Apple Company’s value chain
This main purpose for this article is to analyze Apple Company’s value chain. From this article, some professional knowledge about value chain in operation management can be learned. And the analyze will be deeply discussed in operation structure. In the textbook, operation structure is defined as the configurations of resources in the value chain including elements of suppliers, factories, distributors, sales offices, design and so on. (Collier and Evans, OM) The following articles will analyze specifically how
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(Collier and Evans, OM) It is not difficult to find that Apple company applied both two ways in operation management. Example for backward integration is that factories work overtime to build hundreds of thousands of devices. The hint from this example is that gaining suppliers’ capabilities is key point to meet customers’ needs and manage the inventory stock. For Apple Company, phenomenon of short supply always exists during the introduction stage of the product life cycle. Therefore, maximize the supplier productivity is the way to solve the short supply problem. On the other hand, reasonable inventory managements are also vital to the growth stage and maturity stage for products. Apple Company owns advanced technology system to track demand hourly. By this system, The Company can adjust productivity according to the demand. An efficient distribution system can enable a company to operate with lower inventory levels. Therefore, lower costs and offering high qualities of service that meet customers’ needs. (Collier and Evans, OM) In conclusion, Apple’s business performance can not leave the powerful backward integration. On the other hand, Apple Company attempt to strictly control whole process of the value chain. The evidence can be found during the IPAD 2 publish period. Employees in Apple Company supervise each handoff point (distribution center) to ensure no mistakes

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