Problem:
Apple's chief executive officer (CEO) Tim Cook parlayed the 16 years of supply management experience he gained working at IBM and Compaq Computers to entirely revamp Apple's manufacturing process. Starting as Apple's chief operating officer (COO) in 1998, Cook pulled the company out of manufacturing, closing Apple's warehouses and factories around the world. He opted instead to establish relationships with independent manufacturing contractors, many of them located in China where labor and cost of goods were much cheaper. These manufacturers would deliver products as needed. Cook credits these changes as a key factor in Apple's growth and profitability. What system is Cook using and why would it increase profitability for Apple?