An examination of external risk factors in Apple Inc.’s supply chain

ABSTRACT

The Apple Computer Company has evolved into one of the most innovative technology-based firms to transpire in the last three decades. Much of its success has been attributed to effective supply chain management. The purpose of this study is to provide an examination of external risk factors associated with Apple Inc.’s key suppliers through the creation of Bayesian networks. The study sample consists of Apple Inc.’s top electronic equipment suppliers based on its expenditure levels (e.g., cost of goods sold; selling, general and administrative cost; research and development, etc.) directly associated with these firms. Bayesian networks are used as a methodology for examining the supplier external risk profiles for the study sample. The results of this study show that Bayesian networks can be effectively used to assist managers in making decisions regarding current and prospective suppliers with respect to their potential impact on supply chains as illustrated through their corresponding external risk profiles.

KEYWORDS:

• Supply chain risk
• Bayesian networks
• Apple Computer
• supplier external risk events
• global supply chains
• supplier riskmanagement

Disclosure statement

No potential conflict of interest was reported by the author.

Additional information

Notes on contributors

Archie Lockamy

Archie Lockamy III, PhD, CFPIM, is the Margaret Gage Bush Professor of Business and Professor of Department of Entrepreneurship, Management, & Marketing at Samford University. Prior to his academic career, Dr Lockamy held various engineering and managerial positions with DuPont, Procter and Gamble and TRW. Dr Lockamy has published research articles in numerous academic journals, and co-authored the book Reengineering Performance Measurement: How To Align Systems To Improve Processes, Products and Profits. Dr Lockamy served on the 1997, 1998, 1999, 2000, 2001 and 2002 Board of Examiners for the Malcolm Baldrige National Quality Award via appointment by the United States Department of Commerce. He also served as Vice President of the Board of Directors of the American Production and Inventory Control Society (APICS) Educational and Research Foundation. Dr Lockamy is recognized as a Certified Fellow in Production and Inventory Management (CFPIM) by APICS, and is certified as an Academic Jonah by the Avraham Y. Goldratt Institute.