POTENTIAL SUPPLY CHAIN RISKS (Thuý Vy)

Apple is a successful business due to its global supply chain so it is directly affected
by the world economy. After experiencing the Covid 19 pandemic, Apple has
confronted a supply chain problem, a reduction in available capacity for the
production and distribution of spare parts, causing rising costs and shortage of high-
tech equipment provided to customers.
The Apple Company operates through demand forecasting so a strong pre-order sales
strategy, depending on the production needs, contributes significantly to the profit
margin. However, inventory forecasting may lead to excess inventory, which makes
the manufactured goods become obsolete, lose value, as the demand for that product
diminishes, and takes shelf space away from a newer product with a higher profit
margin.
Apple's Supply Chain Strategy, Its Success and Risks | Business Essay Example