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SCH4801 ASSIGNMENT 2 2025 SEMESTER 1 As a postgraduate student, you correctly identify that while Toyota primarily focuses on the Toyota Production System (TPS) as its manufacturing philosophy, other production strategies can complement TPS to achieve f

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SCH4801 ASSIGNMENT 2 2025 SEMESTER 1 As a postgraduate student, you correctly identify that while Toyota primarily focuses on the Toyota Production System (TPS) as its manufacturing philosophy, other production strategies can complement TPS to achieve further cost savings and enhance competitiveness. TPS is inherently a lean production system, emphasizing the elimination of waste, maintenance of high efficiency, shorter lead times, higher quality, and lower costs. However, by selectively integrating other strategies like make-to-stock, assemble-to-order, and make-to-order, Toyota can develop a more "leagile" supply chain, combining the efficiency of lean with the responsiveness of agile approaches. Make-to-Stock (MTS) Production Strategy This strategy involves producing goods and holding them in finished goods inventory based on forecasted demand, prior to receiving actual customer orders according to Ambe (2014). It is typically a push-based system. High-Volume Standardized Models: For Toyota's best-selling and functional products with relatively predictable demand, such as the Hilux and Corolla, an MTS strategy can be highly relevant. Leveraging Lean Efficiency: Toyota can apply its lean TPS principles to achieve significant economies of scale in the production of these high-volume, standardized vehicles and their common components. This allows for optimized capacity utilization and minimizes production costs (Loury-Okoumba & Mafini, 2021). Cost Savings: By producing large batches of standard models to stock, Toyota can reduce per-unit manufacturing costs and optimize distribution efficiency for these products. This strategy is efficient in environments with stable demand, contributing to overall cost competitiveness. Integration with TPS: The lean principles of TPS (waste elimination, continuous improvement) are perfectly suited for optimizing the MTS flow, ensuring that even when producing to stock, overproduction is minimized, and quality is maintained. The "push-pull boundary" for MTS would be very close to the end customer, with finished vehicles awaiting immediate delivery. While efficient, pure MTS carries the risk of overproduction and high inventory holding costs if market demand shifts or forecasts are inaccurate. Toyota's experience with 45,000 vehicles being destroyed in the 2022 floods highlights the financial risk of holding large, finished goods inventory. Therefore, while relevant for core, stable products, it must be carefully managed with accurate forecasting and quick adaptation to avoid significant losses

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Educating the world for a better change

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Table of Contents

SECTION A ................................................................................................................ 4

1.1 Inventory-related decisions ................................Error! Bookmark not defined.

1.2 Production strategies ........................................................................................ 6

Toyota supply chain .............................................................................................. 10

1.3b) Based on Toyota’s supply chain presented in 1.3a, distinguish between each
role player by providing a relevant example from the case study. (6) ................... 11

SECTION B .............................................................................................................. 13

(a) Two Most Probable Key Supplier-Evaluation Criteria Not Mentioned by the AI
Tool ....................................................................................................................... 13

(b) Evaluation of the AI Tool's Answer Against Question Instructions ................... 13

SECTION C .............................................................................................................. 14

3.1 Gilbeys Wineries and ABC Inventory Analysis for Independent Finished Goods
.............................................................................................................................. 14

3.2 The Bullwhip Effect on Dairy Belle Cheese and Butter Supply Chain ....... Error!
Bookmark not defined.

3.3 Methods for Determining Customer Needs for ET Clothing Distributors ......... 17

References ............................................................................................................... 19




Educating the world for a better change

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