Question

1.   Choose a firm that you want to know more about or that you would like to work for in the future. Research the firm and it's supply chain. Consider this from the raw materials to the end user and explain and define the firms supply chain.

2. How could the firm improve it's supply chain? Consider the Pareto Optimum.

3. Would a vertical merger be an option for the supply chain? What type of efficiencies may be gained? What may be lost?

Answer 1

Since you didn't mention any particular firm i would like to choose Apple Inc. Please like this answer it really helps me a lot.

Apple Inc. is considered to be having the best supply chain in the world. The supply chain of Apple consists of procuring or purchasing the materials required to manufacture a device and directly gets them shipped to the assembling plant in China. And there the process of manufacturing gets started. It uses recycled aluminium for most of its products to make them environment friendly thus complying with most of the laws and regulations. Once the process of assembling gets completed, then the products are directly shipped to the retailers and distributors in various parts of the world directly from the assembling plant thus reducing the unnecessary transportation costs. It ships to various retailers and distributors in Asian markets, USA etc. And coming to the service, Apple Authorized Service centers are mostly everywhere around the parts of the world. We may not see them only in some of the country areas. Apart from those rural areas we can witness the Apple Service centers (either franchise or directly run by Apple).

As already discussed apple has the best supply chain in the world and improvement could not be made further, but if you ask my opinion i would consider establishing more number of assembling over the markets so that the transportation costs would be much lesser than they were today. Considering the Pareto Optimum, the point where the allocation of the goods produced where there won't be any negative effect or in other words where we cannot make something better by making something worse off cannot be made further with this improvement.

Vertical merger can be defined as that type of merger in the supply chain, in which two or more firms combine to satisfy a common need of the customer but doesn't relate to one another. As far as my knowledge is concerned Apple is not ready to take any firm for vertical merger of it's supply chain, with the recent legal cases and suits we can take a hint or just draw a line of hope as to the acquisition of any Telecommunication company that produces modems for their mobile devices.

If you find this answer helpful, please leave a like this really helps me a lot. If you have any doubts please let me know so that i could assist you better.