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A budget as financial plan aimed to control future operations and results. The general purpose of a budget is to allocate funds in an effort to achieve very specific results, typically a profit. A budget is one of many tools in a toolbox used to aid a business’s decision making in both the long and short term. My performance in this task is a poor reflection of my budgeting skills, but an accurate reflection of my desire to make decisions quickly. During the simulation, I made significant efforts to ensure I fully understood all of the data I was reading. However, there seemed to be several points I overlooked. For example, I misunderstood the cycle for opening additional plants or allowing current plants to have higher production levels.…show more content…
It appeared that what I was doing in those departments was reflected in the success of my market share. Instead, I paid to have my capacity increased from 25 to 100 per day due to my lost sales in the previous quarter. At the end of the fourth quarter I still held a majority of the market share; considering I turned away 9,064 consumers and only sold 1,625 products – this was impressive. The biggest mistake I made, due to anticipating my capacity would increase immediately, was hiring additional sales staff. By the end of the fourth quarter, my net income and cash flow statements had plummeted. I wish I would have taken more time in the third and fourth quarters to really evaluate my decisions and ensure they were effective. Just In Time (JIT): A just in time approach maintains only required inventory in demand; it uses previous year’s statistics to dictate the amount of inventory to be kept on hand (Business.com). The benefits of a just in time approach are that it reduces inventory, shipping fees, depreciation, and doesn’t waste product. I had every intention of utilizing a JIT approach. In fact, that was the reason I put off increasing my capacity for so long. I figured it was likely that I would continue to enhance my products and change my strategies in the beginning. I also thought that my products would not be highly demanded in the beginning. It worked well for me in the first two quarters. It wasn’t until the second half

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