In the Supply Chain Operations Reference-model (SCOR®), the cash-to-cash cycle time for a manufacturing company is the number of days between which two of the following situations?
A.
Paying for raw materials and getting paid for the product
B.
Shipping the product from the warehouse and receiving it at the customer's location
C.
Paying for raw materials and sending an invoice to the customer
D.
Billing the customer and getting paid for the product
The cash-to-cash cycle time in the SCOR® model represents the duration it takes for a company to convert its investments in inventory and other resources into cash flows from sales. This metric is crucial for understanding the efficiency of a company's supply chain and working capital management. It is calculated as the number of days between paying for raw materials (cash outflow) and receiving payment for the finished product (cash inflow). This measure includes the time materials spend in production, the duration finished goods remain in inventory, and the time taken for the company to collect payment from customers.
[References:, SCOR® Model documentation by APICS, "Supply Chain Management: Strategy, Planning, and Operation" by Sunil Chopra and Peter Meindl, ]
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