1. Where should the plant be located and what degree of flexibilities should be build into each? What capacity should each plant have?
Answer: Toyota applies its global complementation strategy to its part plant. Each plant should be designed with capacity to supply its regional factories.
Toyota has around 45 plants globally to cater the demand of customers. Their plants have flexibility to manufacture their various models from the same plant. They have highest capacity at its plant located at ...view middle of the document...
2. Should plant be able to produce for all markets or only specific contingency market?
Answer: Flexibility to supply other markets when their local market demand is weakened. Their plant should able to supply at least one more market / region.
Their plants are sufficient enough to cater the local demand as well as the global demand. During inflation or deflation in economy, they can manage their global operation to survive in the market by promoting low manufacturing cost plant operations.
3. How should markets be allocated to plant and how frequently should this allocation be revised?
Answer: Standard allocation should be optimized during the planning phase. Adjusted when necessary, reviewed either annually or twice in a year.
4. What kind of flexibilities should be build into the distribution system?
Answer: Optimized flexibilities should be build into the distribution system regionally between the factories and their supplying parts plants. It will be necessary for cost effective distribution to occur between plants and factories to non local markets.
5. What action may be taken during product design to facilitate this flexibility?
Answer: During product design Toyota approach consistency among global products for flexibility among market. Product design engineers should craft elements that both maximize stability and satisfy local needs.