Working Capital Management
Description
There is a cost associated with holding inventories or stocks. Just-in-time techniques can provide cost efficiencies in terms of a reduction in holding inventories. In formulating your piece, 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 benefits—and drawbacks—of such JIT techniques are limited to large manufacturing businesses or whether they have wider applications for other organisations.
