The job of a psu fan is to cool the psu only.
It has no part in case cooling.
The intake is the fan opening, and the exhaust is to the rear of the psu.
Dangle a piece of toilet paper near each opening to verify correct operation.
The case is designed to have the psu intake on the bottom.
On a hardwood floor is good, it allows sufficient air to enter assuming that your case has some feet that raises the case a cm or so above the floor.
If the case did not come with them, a hardware store sells stick on furniture casters that does the job nicely.
A psu operates equally well right side up or upside down, your choice.
But, If the intake is inside the case, the psu will draw in warmer air than it needs to.