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

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.