Cash-to-cash cycle (C2C): the supply chain metrics that matter (300 words) In its simplest form, the cash-to-cash cycle = days of inventory + days of receivables – days of payables (note that the length of the C2C cycle can also be expressed in weeks as we have done in class) The smaller the number for C2C, the company can operate with less cash tied up in operations. What is the equity implication for C2C reduction by increasing the days of payables and decreasing the days of receivables? Is it healthy for the supply chain overall? From a supply chain management point of view, please suggest some generic principles as of how days of inventory, or inventory level, could be decreased in order to reduce the C2C number.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Cash-to-cash cycle (C2C): the supply chain metrics that matter (300
words)
In its simplest form, the cash-to-cash cycle = days of inventory + days
of receivables – days of payables (note that the length of the C2C cycle
can also be expressed in weeks as we have done in class)
The smaller the number for C2C, the company can operate with less
cash tied up in operations.
What is the equity implication for C2C reduction by increasing the days
of payables and decreasing the days of receivables? Is it healthy for
the supply chain overall?
From a
generic principles as of how days of inventory, or inventory level, could
be decreased in order to reduce the C2C number.
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