Assessing and Using Seasonality in Examining Apple Incorporated's Inventory Management

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Assessing and Using Seasonality in Examining Apple Inc. Inventory Management In the commercial environment Apple are known not only for their innovative products: they are also known for their highly effective inventory control. The system utilized by the firm means that at any point in time there is a minimal amount of capital tied up in the inventory, holding only sufficient inventory to support sales for five days. The ability of the firm, to operate consistently in this manner without suffering significant 'stockouts', especially when the demand for the products does not remain the same through the year, is a credit to the organization and ability to adapt to the demand, indicating a strong understanding of the way inventory needs vary. To appreciate the way this may occur it is possible to look at the firm and examine the way inventory is used, assessing the level of seasonality and looking at the stock management in this context. To examine the patterns seen in the inventory use data was collected on a quarterly basis from Apples Inc. quarterly reports, to determine the level of inventory used in each quarter. To gain a full picture data was gathered equally across all four quarters, as not all quarter for 2012 are available, the data was taken from the third quarter of 2007 up to the 2nd quarter of 2012. The first stage is assessing if there are any trends or patterns in the way that stock is used is to plot the data on a graph, which will show any fluctuations

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