OPERATION MANAGEMENT

Topic:
Inventory Management
Company:
Apple Inc.

Group Members:
Ammad Sattar (Leader)
BSME01183123

Abou Bakar
BSME01183157

Moiz Ahmed
BSME01183170

Shoaib Farooq
BSME01183034
About the Company:
Apple Inc, previously Apple Computer Inc., American maker of PCs, cell phones,
tablet PCs, PC peripherals, and PC programming. It was the primary effective PC
organization and the popularizer of the graphical UI. Base camp are situated in
Cupertino, California.

Garage start-up:
Apple Inc. had its beginning in the long lasting dream of Stephen G. Wozniak to
fabricate his own PC — a fantasy that was made out of nowhere practical with the
appearance in 1975 of the principal monetarily effective microcomputer, the
Altair 8800, which came as a pack and utilized the as of late developed microchip
chip. Supported by his companions at the Homebrew Computer Club, a San
Francisco Bay region bunch revolved around the Altair, Wozniak immediately
thought of an arrangement for his own microcomputer. In 1976, when the
Hewlett-Packard Company, where Wozniak was a designing understudy,
communicated no interest in his plan, Wozniak, then 26 years of age, along with a
previous secondary school colleague, 21-year-old Steve Jobs, moved creation
tasks to the Jobs family carport. Occupations and Wozniak named their
organization Apple. For working capital, Jobs sold his Volkswagen minibus and
Wozniak his programmable number cruncher. Their most memorable model was
basically a functioning circuit board, yet at Jobs' demand the 1977 variant was an
independent machine in an exceptionally shaped plastic case, rather than the
disallowing steel boxes of other early machines. This Apple II likewise offered a
variety show and different highlights that made Wozniak's creation the primary
microcomputer that spoke to the typical individual.

Apple's Lisa Computer

In 2001 Apple presented iTunes, a PC program for playing music and for changing
music over completely to the minimal MP3 computerized design normally utilized
in PCs and other computerized gadgets. Later that very year, Apple started selling
the iPod, a versatile MP3 player, which immediately turned into the market chief.
(The term podcasting, consolidating iPod and broadcasting, is utilized as both a
thing and an action word to allude to sound or video material downloaded for
compact or postponed playback.) Later models added bigger capacity limits or
more modest sizes, variety screens, and video playback highlights. In 2003 Apple
started selling downloadable duplicates of significant record organization tunes in
MP3 design over the Internet. By 2006 more than one billion tunes and recordings
had been sold through Apple's Web website.

The First iPhone:

In 2007 Apple introduced the touch-screen iPhone, a cellular telephone with
capabilities for playing MP3s and videos and for accessing the Internet. The first
models were available only in conjunction with AT&T’s wireless service and could
not be used over the latest third-generation (3G) wireless networks. Apple
rectified the latter limitation in 2008 with the release of the iPhone 3G, or iPhone
2.0, which also included support for the global positioning system (GPS).

First iPhone

This phone revolutionized the entire mobile phone market by removing physicals
buttons by display.
After Jobs: Tim Cook as CEO and the first trillion-dollar company
Because of ill health, Jobs resigned as CEO in August 2011 and was succeeded by
chief operating officer Tim Cook; Jobs died from cancer that October. In the early
years of Cook’s tenure, Apple did not introduce any all-new products but rather
brought out new versions of previous products, such as the iPhone 4S, which
contained a personal assistant program, Siri, that could respond to spoken
commands and questions (2011); the iPad Mini, a smaller version of the iPad
(2012); and the iPad Pro, a large version of the iPad intended for business use
(2015). In 2014 Apple made its largest acquisition by buying the headphone
manufacturer and music-streaming company Beats for $3 billion.

Tim Cook

In 2015 Apple introduced a smart watch, the Apple Watch. A redesign with a
sensor that could make electrocardiograms (ECGs) was presented as Series 4 in
2018. AirPods, a set of wireless earphones, were introduced in 2016 and became
a top seller in that market.
Propelled by the popularity of the iPhone, in 2018 Apple became the first
company to reach a value of one trillion dollars. Two years later Apple became
the first company to double that figure.
In 2020 Apple introduced its own microprocessor, the M1, for Macintosh
computers, which had previously used Intel chips. The M1 was one of the fastest
microprocessors available and was designed to be fast while also using less power
than previous chips.

Over the years, Apple has expanded the number of retail locations and its
geographical coverage, with 519 stores across 25 countries worldwide as of May
21, 2022.
Inventory Management:
Inventory Management refers to the process of ordering, storing, using, and
selling a company's inventory. This includes the management of raw materials,
components, and finished products, as well as warehousing and processing of
such items.

An organization's stock is one of its most significant resources. In retail,

fabricating, food administrations, and other stock serious areas, an organization's
bits of feedbacks and completed items are the center of its business. A lack of
stock when and where it's required can be incredibly hindering.

Inventory management process:

The stock administration process includes following and controlling stock as it
moves from your providers to your distribution center to your clients. There are
five fundamental stages to follow:
1. Buying: This can mean purchasing raw material to transform into items, or
purchasing items to sell on with no gathering required.
2. Creation: Making your completed item from its constituent parts. Only one
out of every odd organization will engage in assembling — wholesalers, for
example, could avoid this step altogether.
3. Holding stock: Storing your raw material before they're produced
(whenever required), and your completed products before they're sold.
4. Deals: Getting your stock into clients' hands, and taking installment.
5. Detailing: Businesses need to know the amount it is selling, and how much
cash it makes on every deal.
How Apple Manufactured iPhones:
Anyone who has bought an iPhone or another Apple product has seen the note
on the company’s packaging that its products are designed in California, but that
doesn't mean they're manufactured there.

Manufactured Vs. Assembled:

Manufacturing is the method involved with making the parts that go into the
iPhone. While Apple plans and sells the iPhone, it doesn't produce its parts. All
things considered, Apple utilizes producers from around the world to convey
individual parts. The producers work specifically things — camera experts
fabricate the focal point and camera gathering, screen experts construct the
showcase, etc.

Then all the components are collected in one place, is the method involved with
taking every one of the singular parts worked by expert makers and consolidating
them into a completed the process of, working iPhone.

The iPhone's Component Manufacturers:

Since there are many individual parts in each iPhone, it's unrealistic to list each
producer whose items are tracked down on the telephone. It's additionally hard
to observe precisely where those parts are made on the grounds that occasionally
one organization constructs similar part at numerous plants.
Some of the suppliers of key or interesting parts for the iPhone 5S, 6, and 6S and
where they operate, included:
 Audio chips: Cirrus Logic, based in the U.S. with locations in the U.K., China,
South Korea, Taiwan, Japan, and Singapore
 Battery: Samsung, based in South Korea with locations in 80 countries
 Battery: Sunwoda Electronic, based in China
 Camera: Sony, based in Japan with locations in dozens of countries
 Chips for cellular networking: Qualcomm 
 Compass: AKM Semiconductor, based in Japan with locations in the U.S.,
France, England, China, South Korea, and Taiwan
 Glass screen: Corning, based in the U.S., with locations in Australia,
Belgium, Brazil, China, Denmark, France, Germany, Hong Kong, India, Israel,
Italy, Japan, South Korea, Malaysia, Mexico, Philippines, Poland, Russia,
Singapore, South Africa, Spain, Taiwan, The Netherlands, Turkey, the U.K.,
and the United Arab Emirates  
  Flash memory: Samsung 
 LCD screen: Sharp, based in Japan with locations in 13 countries
 LCD screen: LG, based in South Korea with locations in Poland and China
 A-series processor: Samsung 
 A-series processor: TSMC, based in Taiwan with locations in China,
Singapore, and the U.S.
 Touch ID: Xintec. Based in Taiwan. 
 Touch-screen controller: Broadcom, based in the U.S. with locations in
Israel, Greece, the U.K., the Netherlands, Belgium, France, India, China,
Taiwan, Singapore, and South Korea
 Wi-Fi chip: Murata, based in the U.S. with locations in Japan, Mexico, Brazil,
Canada, China, Taiwan, South Korea, Thailand, Malaysia, Philippines, India,
Vietnam, The Netherlands, Spain, the U.K., Germany, Hungary, France,
Italy, and Finland

The iPhone's Assemblers:

The components manufactured by those companies all around the world are
ultimately sent to just two companies to assemble into iPods, iPhones, and iPads.
Those companies are Foxconn and Pegatron, both of which are based in Taiwan.

Foxconn is a Tanwanese organization that has some expertise in hardware get

together. It makes the greater part of the iPhone on the planet. It is assessed that
one Foxconn industrial facility can utilize in excess of 200,000 laborers to its
sequential construction system, which can make in excess of 50,000 iPhone 5
back plates each day. With its unbelievable assembling productivity, Foxconn has
been iPhone's assembling for a long time.
 
Cheaper Labor:
Apple gives out many manufacturing jobs in China. Since China has lots of people
who are in struggle for jobs, the manufacture of the iPhone increases China’s
employment to some extent and has much cheaper labor as compared to US.

Warehousing:
Tim Cook’s mantra was from the very beginning to slash inventory, cut down on
warehouses and make suppliers compete between themselves.
Apple is well known for its advancement and plan. However, scarcely any
individuals realize that the manner in which Apple handles stock is likewise an
element that prompted achievement.

Tim Cook, the ongoing CEO of Apple, an organization that arrived at 260.17 billion
in incomes in 2019, was before the organization's Chief Operations Officer. He
had joined Apple in 1998, similar time Steve Jobs returned the organization, and
he changes Apple's untidy tasks into a triumph, becoming COO in 2005 and CEO in
2011.
Tim Cook accepts that with regards to innovation, for example, cell phones,
tablets and PCs, stock deplores incredibly, rapidly, losing 1-2% of its worth every
week - "stock is on a very basic level insidiousness" he says.

Apple yearly stock topped in 2017, with a worth of $4.8 billion. In 2018, the
organization saw a 18.52% decay year-over-year however they returned rapidly
and they had $3.8 billion in stock in 2019, a 3.79% increment versus 2018.

By 2013, Apple was managing 154 key providers (way lower than Amazon for
instance), which works with better provider connections) and kept just a single
focal distribution center in wonderful information sync with the aprox. 250
possessed stores.

The manufactured products are shipped from China directly to the consumers
who order them online (drop shipping) by using the services of third-party
shippers such as FedEx or UPS. They can also be shipped to the central warehouse
location in California.

Losing Value Fast:

Why is it so important to keep as little inventory on hand as possible? Because it
costs companies money every day they store products in their warehouses. Not
only that, but with technology always improving, high-tech manufacturers can’t
afford to keep too many products in stock because a sudden announcement from
a competitor or a new innovation could change everything and suddenly bring
down the value of their products. It’s important to remain flexible.