Working capital management
To prepare for this Key Concept Exercise:
•Read the Required Learning Resources forWeek 7.
In formulating your Key Concept Exercise, consider the following questions:
•What are the benefits of just-in-time (JIT) techniques?•What types oforganisations use JIT techniques?•Should things change if they are running smoothly?
In an approximately 500-word response, address the following issues/questions:
'Things that are running smoothly should not be subject to any control. If you commit yourself to just finding and fixing problems, you'll be able to carry out effective control (within anorganisation) with fewer personnel' (Minoura, 2003).
Discuss what the above statement means and whether you agree with it. Describe how anorganisation that you have experience of, or have researched, has benefitted from just-in-time (JIT) techniques and with special reference to inventory control. Also discuss whether the potential benefits-and drawbacks-of such JIT techniques are limited to large manufacturing businesses or whether they have wider applications for otherorganisations.
To complete this Key Concept Exercise:
•Be sure to read over your Key Concept Exercise before submitting it to your Instructor. Make sure the spelling and grammar are correct and the language, citing and referencing you use when providing your opinion are appropriate for academic writing.
Learning Resources
Readings (Required)
Atrill, P. &McLaney, E. (2013)Accounting and finance for non-specialists.8th Ed. Harlow, UK: Pearson Publishing.
•Chapter 12, 'Managing Working Capital' (pp.434-478)
Media (Required)
Laureate Education (2014)Financing strategy and working capital strategymatrix[Multimedia, Online]. (Accessed: 25 November 2014).
Referencing should be Harvard Style