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Toyota Motor Corporation Is Japan

Toyota faces key issues in designing its global production and distribution network, such as determining the appropriate production capabilities of each factory and whether factories should supply only local or multiple global markets. Toyota must also address questions about configuring and designing a flexible supply chain, including where to locate plants, what capacity each plant should have, which markets plants should supply, and how to design distribution systems and products to facilitate flexibility.

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Adil Mustafa
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754 views1 page

Toyota Motor Corporation Is Japan

Toyota faces key issues in designing its global production and distribution network, such as determining the appropriate production capabilities of each factory and whether factories should supply only local or multiple global markets. Toyota must also address questions about configuring and designing a flexible supply chain, including where to locate plants, what capacity each plant should have, which markets plants should supply, and how to design distribution systems and products to facilitate flexibility.

Uploaded by

Adil Mustafa
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Toyota Motor Corporation is Japans top auto manufacturer and has experienced significant growth in global sales over

the last two decades. A key issue facing Toyota is the design of its global production and distribution network .Part of Toyotas global strategy is to open factories in every market it serves .Toyota must decide what production capability of each of the factories will be, as this is significant impact on the desired distribution system. At one extreme, each plant can be equipped only for local production .At the other extreme each plant is capable of supplying every market. Prior to 1996, Toyota used specialized local factories for each market .After Asian financial crisis in 1996/1997, Toyota redesigned its plant so that it can also export to market that remain strong when the local market weakens. Toyota calls this strategy global complementation. Whether to the global or local is also an issue for Toyotas part plants .Should they be designed for local consumption or should there be few parts plants globally that supply multiple assembly plants?. For any global manufacturer like Toyota, one must address the following questions regarding the configuration and capability of the supply chain.
1. Where should the plants be located and what degree of flexibility should be built into each? What capacity should each plant have? 2. Should plants be able to produce for all markets or only specific contingency markets? 3. How should markets be allocated to plants and how frequently should this allocation be revised? 4. What kind of flexibility should be built into distribution system? 5. How should this flexible investment be valued? 6. What actions may be taken during product design to facilitate this flexibility?

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