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Cash-to-cash cycle time is the “average number of days that it takes a business to convert cash spent for raw material and other resources into cash inflows from sales” (Jacobs and Chase, 2014, p. 436). Cash flow is critical for any type of organization, but in the supply chain world, it shows how quickly an organization can create cash from raw material. In the simulation assignments, we see how long it takes from ordering supplies, to producing the product, to shipping the product, and finally receiving a payment from the customer once the supplies are delivered. Sometimes it can take a few weeks before the organization is able to receive payment on products they shipped two weeks ago.

Cash-to-cash cycle time is the “average number of days that it takes a business to convert cash spent for raw material and other resources into cash inflows from sales” (Jacobs and Chase, 2014, p. 436). Cash flow is critical for any type of organization, but in the supply chain world, it shows how quickly an organization can create cash from raw material. In the simulation assignments, we see how long it takes from ordering supplies, to producing the product, to shipping the product, and finally receiving a payment from the customer once the supplies are delivered. Sometimes it can take a few weeks before the organization is able to receive payment on products they shipped two weeks ago.

Jacobs, F. R., & Chase, R.B. (2014). Operations and supply chain management (14th ed.). Retrieved from The University of Phoenix eBook Collection database.

Your Response no less than 150-words to the above. I work in Human Resources so direct your response to include real-life examples within my profession. Also, please make sure to use peer-reviewed and/or reputable internet sources in-text citations and references. The professor is being very strict about this.



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