Question: Question 3 - Material Requirement Plan for iPhone Model F (5 marks) Apple, the world-leading mobile device manufacturer, is preparing the materials for the production

Question 3 - Material Requirement Plan for iPhone

Question 3 - Material Requirement Plan for iPhone Model F (5 marks) Apple, the world-leading mobile device manufacturer, is preparing the materials for the production of the latest model F, which the final product F is assembled by the subassemblies and components as shown in the product structure tree below. If you are given the following information regarding the forecast demand of Product F, on-hand inventory, scheduled receipt, order lead time and minimum order quantity. Prepare the material requirement planning reports for all the components. (4 marks) Model F Sub A (1) Sub B (3) Comp C Comp D Comp D Comp E (2) (1) (2) (3) *number in brackets show the quantity required for that item to make one unit of its parent. Week 1 2 3 4 5 6 7 9 100 Forecast Demand 20+ 15% 50304 40 10 40 504 104 10 se Beginning Lead Time On-Hand Scheduled Receipt Minimum Order item (Weeks) Inventory (Week, Quantity Quantity Model F le 40 (1, 25), (2, 10) 25 Sub Ae le 40 (1, 10) 25 Sub Be 2 75e (2, 10) 75e Comp C 2 40 (2,40) 40 Comp D 310 (1, 10) 160 Comp EP 2e 4652 (2, 15) 240 *Remark: Minimum order quantity means the order size of that item at each period must be equal or larger than the minimum order quantity. 1 If Apple wants to combine some orders of the final product (Model F) assembly, given the order setup cost is $1000/order and inventory holding cost is $15/unit/week. Apply the least- total-cost method to determine the lot-size of each order for the final product. You don't need to rework your MRP records for all sub-assemblies and components. Just show the steps on how you determine each order size for the final product F. (1 mark)

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