Table of Contents

Production Management

Two production trade-offs for company- Volume vs Variety and Responsiveness vs Efficiency

Discuss whether the chosen supply chain follow a push or a pull or a push-pull system

References

Production Management

Two production trade-offs for company- Volume vs Variety and Responsiveness vs Efficiency

The organisation main motto is to fulfil requirements of customers in most appropriate manner and meet their need and demand (Choi, Wallace and Wang, 2016). Toyota has to understand customer requirements and accordingly adopt production trade offs for their business. Here, they have adopted two different trade off which are described below:

Volume vs Variety

Volume

Toyota is manufacturing large number of vehicles such as more than 10,000 thousand units per annum. There is high repetition of such process for maximum output (Toyota Business Model – Managing Business Operations, 2020). This helps in systemization of activities as well as developing expertise in particular work. Employees are regarded as important product development system of business. Respective organisation can achieve economies of scale as well as reducing per unit cost of production.

Variety

Toyota focuses on large variety for balancing market demand as well as efficiency of operations (Colicchia, Creazza and Dallari, 2017). It is presented in all types of segments of vehicles and more than 70 models are sold by it at marketplace. This assist in making portfolio with high production range and leading towards more variety for processes. With the providing of high variety of vehicles leads to match need and demand of customers and become flexible in customer’s eye. Therefore, higher unit cost as well as process is complex but respective organisation has made advanced production methods in order to control other elements.

Responsiveness vs Efficiency of Toyota is explained with help of five different supply chain drivers which are as follows:

Supply Chain Drivers

Responsiveness

Efficiency

Production

Toyota made excessive production along with possessing flexible manufacturing (Five Supply Chain Drivers, 2018).

Toyota is rising efficiency with high production and providing to users (Hackius and Petersen, 2017).

Inventory

It is providing in all location and possesses high level of inventory and product items.

Sometimes, it fails to provide instant vehicle to consumers due to less demand of particular products.

Location

It is responsiveness in terms of available at all locations to fulfil requirements of users (Ross, 2016).

Toyota is providing efficiency in terms of availability in different location and meeting with their demands.

Transportation

Toyota has shipment on frequent basis and possesses fast modes.

In case of far location, it may take time for shipment due to various reasons.

Information

While customers are coming to buy products and services they provide full information to them so that they can make purchase decision and listen to their customers very carefully.

Efficiency of organisation is rising due to fulfilment of their customer requirements and providing relevant information (Wang and et. al., 2016). They also provide services after purchase for some period of time in appropriate manner.

Discuss Whether the Chosen Supply Chain Follow a Push or A Pull or A Push-Pull System

Supply chain carries two strategies such as push or pull or push-pull system. When innovation is created then both commercial as well as social network wants proper network is called push strategy whereas if innovation is directly pushed into market then it needs to change from ecosystem (Wang and Cullinane, 2015).

In case of Toyota, it has adopted pull strategy due to huge financial reserves possessed by it at marketplace. Respective organisation has ability in producing electric vehicles (EV) which is faster as well as cheap in nature (Push vs. Pull Supply Chain for Electric Vehicles: Comparative Study Between Toyota and Tesla, 2020). As Toyota is not choosing to build EV but it focus on building Prius which is global hybrid vehicle which is using existing sales, service network, supply, finance. It is selling approx 10,000,000 units at profit margin at market and supporting hybrid at aftermarket. Respective organisation is considering Prius as social probe in which drivers are experiencing electric driving without disturbing gasoline fuels or purchasing new charging system cars.

Therefore, after above analysis, it has concluded that Toyota has adopted push supply chain strategies in order to survive and sustain at marketplace and fulfilling maximum profits and gains in most effective manner. With the adoption of such strategy, it is possible for it to beat with competitors and manufacture high quality, premium and comfortable vehicles where they can enjoy their driving and gain better experience. This will assist to raise brand value, goodwill, and image at market and leads towards success and growth of business in appropriate manner. Thus, push strategy is best for Toyota for their car production at marketplace.

References for Logistics & Supply Chain Management

Books and Journals

Choi, T. M., Wallace, S. W. and Wang, Y., 2016. Risk management and coordination in service supply chains: information, logistics and outsourcing. Journal of the Operational Research Society. 67(2). pp.159-164.

Colicchia, C., Creazza, A. and Dallari, F., 2017. Lean and green supply chain management through intermodal transport: insights from the fast moving consumer goods industry. Production Planning & Control. 28(4). pp.321-334.

Hackius, N. and Petersen, M., 2017. Blockchain in logistics and supply chain: trick or treat?. In Digitalization in Supply Chain Management and Logistics: Smart and Digital Solutions for an Industry 4.0 Environment. Proceedings of the Hamburg International Conference of Logistics (HICL), Vol. 23 (pp. 3-18). Berlin: epubli GmbH.

Ross, D. F., 2016. Introduction to e-supply chain management: engaging technology to build market-winning business partnerships. CRC Press.

Wang, G., Gunasekaran, A., Ngai, E. W. and Papadopoulos, T., 2016. Big data analytics in logistics and supply chain management: Certain investigations for research and applications. International Journal of Production Economics. 176. pp.98-110.

Wang, T. and Cullinane, K., 2015. The efficiency of European container terminals and implications for supply chain management. In Port management (pp. 253-272). Palgrave Macmillan, London.

Online

Five Supply Chain Drivers. 2018. [Online]. Available at: < https://www.scmglobe.com/five-supply-chain-drivers/>.

Push vs. Pull Supply Chain for Electric Vehicles: Comparative Study Between Toyota and Tesla. 2020. [Online]. Available at: < https://atlascorps.org/push-vs-pull-supply-chain-electric-vehicles-comparative-study-toyota-tesla/>.

Toyota Business Model – Managing Business Operations. 2020. [Online]. Available at: < https://pradeepsingh.com/toyota-business/ >.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Supply Chain Management Assignment Help

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