CASE STUDY OF TOYOTA

Bakhtar University

Graduate School of Business Administration

Assignment# 1

Submitted by: Ihsanulhaq Noori

Submitted to: Dr. Mohammad Asif Shah
Subject: SCM
Date: 05/07/2021
Registration #: K1S20MBA0060
Class: MBA -III, Semester – 2021
1
CASE STUDY OF TOYOTA

1. Where should the plants be located, and what degree of flexibility should be built

into each? What capacity should each plant have?

Answer: Factories and plants should be located in every local market which they serve and

the place which have not or have less earthquake and they should be built in geographically

and climatically opposite places. The flexibility of these factories must be guided by Toyota's

complementary global strategy that allows factories to thrive in markets where the market is

weakening. The capacity of each plant must be driven by regional market demand, which has

the flexibility to meet more demand than other export markets.

2. Should plants be able to produce for all markets or only for specific contingency

markets?

Answer: All factories and plants must be able to produce common parts needed in all

markets. This ensures the factory's ability to meet local demands as well as the demand of

other markets.

3. How should markets be allocated to plants and how frequently should this

allocation be revised?

Answer: Factories must respond to the markets in which they are built. This essentially

reduces the cost of logistics and also helps the company respond better to sudden changes in

demand. Apart from the local markets, every factory must be able to produce ordinary plants.

In addition, each plant must complement at least one other plant in terms of production.

2
CASE STUDY OF TOYOTA

This allocation should be reviewed every 6 months or based on any natural disasters,

disruption of the supply chain, political instability and technology.

4. How should the investment in flexibility be valued?

Answer: To increase flexibility, parts must be interchangeable between markets and car models.

This can be done by reusing the parts between the designs and using the basic frames of the car

(sedan, light truck, heavy truck, etc.) with different models that use the frame, in the car.