9 The operating cycle. On average it takes 10 days for raw materials to be delivered to
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9 The operating cycle. On average it takes 10 days for raw materials to be delivered to the Brandon Clothing Company from the time of ordering. When received at the factory raw materials are usually held in the warehouse for 5 days before being issued to production.
The conversion process from raw material to finished article takes approximately 7 days and finished stocks are usually held in store for 4 days before being shipped to customers. Delivery to customers is normally completed in 3 days and the average period of credit taken by customers from receipt of goods is 40 days. Calculate the length of the operating cycle.
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