• Assuming a constant rate for purchases, production, and sales throughout the year, what are Casa de Diseño exists operating cycle (OC), cash conversion cycle (CCC), and resource investment need?
The existing Disenos’ operating cycle (OC)
=average collection period + average age of inventory = (75+ 110) days = 185 days Existing Cash Conversion Cycle (CCC) Continue reading...
= OC - average payment period = (185 – 30) days = 155 days Resources needed
=cost of operating cycle investment ×CCC365= ($ 26,500,000 ×155)/365= $11,253,425
• If Leal can optimize Casa de Diseño’s operations according to industry standards, what will the company’s operating cycle (OC), cash conversion cycle (CCC),