Working capital management (Preview)

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To prepare for this Key Concept Exercise:

• Read the Required Learning Resources ( 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)

In formulating your Key Concept Exercise, consider the following questions:

• What are the benefits of just-in-time (JIT) techniques?
• What types of organisations 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 an organisation) with fewer personnel (Minoura, 2003).

Discuss what the above statement means and whether you agree with it. Describe how an organisation 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 benefitsand drawbacksof such JIT techniques are limited to large manufacturing businesses or whether they have wider applications for other organisations.

Base your answer on research, your readings and your own experiences. Please cite all references.

Reference: Minoura, T. (2003) The Toyota production system. Available from: http://www.kellogg.northwestern.edu/course/opns430/modules/lean_operations/ThinkingToyota.pdf (Accessed: 22nd July 2015).

To complete this Key Concept Exercise:

• BesuretoreadoveryourKeyConceptExercisebeforesubmittingittoyourInstructor.Makesurethespellingandgrammararecorrectandthelanguage,citingandreferencingyouusewhenprovidingyouropinionareappropriateforacademicwriting.

Important note: plagiarism should not exceed 15%. Extra plagiarism will not be accepted and cost will not be paid.