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)

*Remark: Minimum order quantity means the order size of that item at each period must be equal or larger than the minimum order quantity.

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 dont 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)

Model F Aca) Sub A (1) Sub B (3) Comp C (2) Comp D (1) Comp D (2) Comp E (3) #number in brackets show the quantity required for that item to make one unit of its parent. Week e le 22 3e 4e 5e 6 7e 8e gel 100 Forecast Demande 2015 45 30 35 30404 52 454 20 Lead Time (Weeks) item Model F Sub Ae Beginning On-Hand Inventory 402 102 Minimum Order Quantity 25e 1 10 10- Sub B 2e 20 352 Scheduled Receipt (Week, Quantity) (1, 25), (2, 15) (1, 10) (2, 45) (2, 10) (1,30) (2, 10) Comp C Comp D Comp E 2e le 2e 452 202 180 2552 2702 390