summary * Toyota motor corporation is Japan's top auto manufacturer and has experienced significant growth in global sale over the last 2 decades. * Akey issue facing Toyota is the design of its global production and distribution network. * Part of the design of its global strategy is to open factories in every market it servesToyota redesigned its plants so that it can also export to market that remain strong when the local market weakens. Toyota called this strategy “global complementation” Whether to be global or local is also an issue for Toyota’s parts plants. Should they be designed for local consumption or should be few parts plants globally that supply multiple assembly plants ? For any global manufacturer like Toyota, one must address the following question regarding the manufacturer and capability of the supply chain.1L. WHERE SHOULD THE PLANT BE LOCATED AND WHAT DEGREE OF FLEXIBILITIES SHOULD BE BUILD EACH rs WHAT CAPACITY SHOULD EACH PLANT HAVE ? = Apply its global complementation strategy to its part plant. = Each plant should be designed with capacity to supply its regional factories = Toyota has around 45 plant 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 CANADA having capacity of 18000cars / month. All other facilities are having an average capacity of around 10000 cars/month.2. Should plant be able to produce for all markets or only specific contingency market? = Flexibility to supply other markets when their local market demand is weakened. ® Their plant should able to supply atleast one more market / region.3. How should markets be allocated to plant and how frequently should this allocation be revised ? ® Standard allocation should be optimized during the planning phase. » Adjusted when necessary, reviewed either annually or twice ina year.4. What kind of flexibilities should be build into the distribution system? " Optimized regionally between the factories and their supplying parts plants. = twill 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 ? * Uniformity among global products for flexibility among market. * Product design engineers should craft elements that both maximize uniformity and satisfy local needs