Apple Apple's Aggregate Planning and MRP Apple considered as one of the most revolutionary companies known for bringing most innovative and radical products for its customers. As much as company has achieved success both in popularity and financially, apple employs very secretive production processes and very few senior managers are aware of the developments going on while product launch. Another major aspect of Apple is that they have very few products being produced on assembly lines in China. So, it is much easier to manage for managers to review and take decisions fast. It is this secretive process of design, production and launch which creates a big hype among all the apple fans, thus even encourages the company executives for keeping the process even more secretive. It is because of this there have been instances where some of the apple product designs get in the hand of journalists and gets leaked to public. So, in the wake of these events, the company has a very strict policy with regard to maintaining the secrecy of ongoing projects development to the extent that they can create physical barriers between teams so that there is no communication. Based on the ranking from Gartner, Apple is the top of supply chain excellence, followed by McDonalds and Amazon. At least 97% of Apple's procurement expenditures for materials, manufacturing and assembly of products are finished worldwide in 2013. In 2012, Apple sold approximately 120 million iPhones, 60 million iPads, 35 million iPods and 15 million Macs. None of these iPhones were produced in the US, expect vital components, and nearly 85% were assembled in China. Why Apple obsessed to outsource its production line to other countries, especially in Asia? Steve Jobs once claimed that it was not because of the cheap labor in Asian countries, but those factories could produce much faster with quite a large scale and flexibility. One of Apple's well - known suppliers is Foxconn, which is a Taiwan company. They can produce thousands of iPhones each day with relatively lower cost of labour. Apple also found another supplier, Pegatron which is also a Taiwan company, to produce iPad and some versions of iPhone. Apple has already had so much outsourced suppliers.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
Question

1.1 discuss the four benefits of an MRP system in relation to apple benefits:

expediting is eliminated 

outstanding orders are decreased 

closer relationship with suppliers and other departments are formed 

the production schedules are based on actual demand and forecast 

1.2 discuss how the just in time inventory system could benefit apple explain the benefits first 

benefits: it reduces lot sizes required in production and purchasing 

It decreases setup times 

it reduces lead times 

it encourages preventative maintenance of the inventory control system 

Apple
Apple's Aggregate Planning and MRP
Apple considered as one of the most revolutionary companies known for bringing most innovative
and radical products for its customers. As much as company has achieved success both in popularity
and financially, apple employs very secretive production processes and very few senior managers
are aware of the developments going on while product launch. Another major aspect of Apple is
that they have very few products being produced on assembly lines in China. So, it is much easier
to manage for managers to review and take decisions fast. It is this secretive process of design,
production and launch which creates a big hype among all the apple fans, thus even encourages the
company executives for keeping the process even more secretive. It is because of this there have
been instances where some of the apple product designs get in the hand of journalists and gets
leaked to public. So, in the wake of these events, the company has a very strict policy with regard
to maintaining the secrecy of ongoing projects development to the extent that they can create
physical barriers between teams so that there is no communication.
Based on the ranking from Gartner, Apple is the top of supply chain excellence, followed by
McDonalds and Amazon. At least 97% of Apple's procurement expenditures for materials,
manufacturing and assembly of products are finished worldwide in 2013. In 2012, Apple sold
approximately 120 million iPhones, 60 million iPads, 35 million iPods and 15 million Macs. None of
these iPhones were produced in the US, expect vital components, and nearly 85% were assembled
in China. Why Apple obsessed to outsource its production line to other countries, especially in Asia?
Steve Jobs once claimed that it was not because of the cheap labor in Asian countries, but those
factories could produce much faster with quite a large scale and flexibility. One of Apple's well -
known suppliers is Foxconn, which is a Taiwan company. They can produce thousands of iPhones
each day with relatively lower cost of labour.
Transcribed Image Text:Apple Apple's Aggregate Planning and MRP Apple considered as one of the most revolutionary companies known for bringing most innovative and radical products for its customers. As much as company has achieved success both in popularity and financially, apple employs very secretive production processes and very few senior managers are aware of the developments going on while product launch. Another major aspect of Apple is that they have very few products being produced on assembly lines in China. So, it is much easier to manage for managers to review and take decisions fast. It is this secretive process of design, production and launch which creates a big hype among all the apple fans, thus even encourages the company executives for keeping the process even more secretive. It is because of this there have been instances where some of the apple product designs get in the hand of journalists and gets leaked to public. So, in the wake of these events, the company has a very strict policy with regard to maintaining the secrecy of ongoing projects development to the extent that they can create physical barriers between teams so that there is no communication. Based on the ranking from Gartner, Apple is the top of supply chain excellence, followed by McDonalds and Amazon. At least 97% of Apple's procurement expenditures for materials, manufacturing and assembly of products are finished worldwide in 2013. In 2012, Apple sold approximately 120 million iPhones, 60 million iPads, 35 million iPods and 15 million Macs. None of these iPhones were produced in the US, expect vital components, and nearly 85% were assembled in China. Why Apple obsessed to outsource its production line to other countries, especially in Asia? Steve Jobs once claimed that it was not because of the cheap labor in Asian countries, but those factories could produce much faster with quite a large scale and flexibility. One of Apple's well - known suppliers is Foxconn, which is a Taiwan company. They can produce thousands of iPhones each day with relatively lower cost of labour.
Apple also found another supplier, Pegatron which is also a Taiwan company, to produce iPad and
some versions of iPhone. Apple has already had so much outsourced suppliers.
Transcribed Image Text:Apple also found another supplier, Pegatron which is also a Taiwan company, to produce iPad and some versions of iPhone. Apple has already had so much outsourced suppliers.
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