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Toyota motor corporations are Japan top auto manufacturer and have experiences significant growth in global sales over the last 2 decades. A key issue facing Toyota is the design of its global production and distribution network. Part of Toyota global strategy is to open factories in every market it serves. Toyota must decide what the production capability of each of the factories will be, as this has a 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. Toyota used specialized local factories for each market. 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”

Supply chain system (Generic)

Flow Chart of Pre-Define Supply Chain Network
in the Simulation Framework when supplies is limited in Toyota

Overall, the advantage of this conceptual simulation framework is the flexibility of the system. It can be set as bi-directional way to determine the flexibility and robustness of the supply change network. This simulation can be used to add on to any existing supply chain management system or enterprise resource planning system, in order to plan the physical network of the desired company’s supply chain network. With the aid of this generic framework, companies are now able to simulate and focus if the planning isaccurate, flexible and most importantly, the reliability.

Flow Diagram of a Typical Inventory Operation

With the inventory system keeping track of each product at a facility full of many difference types of products, there is a need to build an Inventory Policy. This Inventory Policy will allow the encapsulation of rules to control associated inventory, as each Inventory as an unique information (variables), such as on Hand, on Order, type of cost and others. In order to build a strategy...
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