Apple Plans to have 30% Increase of iPhone Production in First Half of 2021 Apple Incorporation plans to manufacture up to 96 million iPhones in the first half of 2021, a nearly 30% year-on-year increase, Nikkei reported. It has asked suppliers to produce around 95 million to 96 million iPhones, including the latest iPhone 12 range as well as older iPhone 11 and SE, though shortage of key parts could threaten the target, the report said, citing people familiar with the matter.

This would mark a 20% rise from 2019 although the target will be regularly reviewed and revised in response to any changes in consumer demand, according to the report.

The tentative full-year forecast that the iPhone maker shared with its suppliers suggests it plans to make up to 230 million iPhones in 2021, including both old and new models, the report said.

Required:

(a) The production volume for iPhone has shown an uptrend for three consecutive quarters since the 3 rd quarter of 2020. It started with 30.5 million in the 3 rd quarter of 2020, 32.7 million in the 4 th quarter of 2020 and 45 million in the 1 st quarter of 2021. Based on the facts as described, answer the following:

(i) By using Nave approach, what is the forecast for the 2 nd quarter of 2021?

(ii) By using simple moving average model with average period (AP) 3, what is the forecasted volume for the 2 nd quarter of 2021?

(iii) By using exponential smoothed forecasting approach with the smoothing constant value of 0.9, what is the forecast for the 2 nd quarter of 2021 whereby the forecasted volume for the 4 th quarter of 2020 same as the actual volume of 3 rd quarter of 2020?

(b) Discuss FIVE (5) elements of total quality management (TQM) concept that can be implemented in Apple's production floor. Support your answer with relevant examples.

(c) Define outsourcing and discuss FOUR (4) reasons that caused Apple to choose outsourcing in their manufacturing services.