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1) When a financial crisis kicked in, you launched immediately a cash-preserving initiative within your organization. Sourcing negotiated an extension of payment terms with your
1) When a financial crisis kicked in, you launched immediately a cash-preserving initiative within your organization. Sourcing negotiated an extension of payment terms with your supplier base and achieved an increase of average weighted payment terms from 37 days to 46 days. Implementing JIT and kanban reduced the Inventory Days from 8 days to 4 days. Collection, payments from customers did not change. What impact did it make on your Cash-to-Cash conversion cycle? A) Negative impact because Self-Funding was lowered B) Positive because all changes resulted in cash preservation only C) Negative because cash saving on Payables offset the saving on Inventory D) No impact. Would be positive only if Account Receivable (Collections) got improved too 2) List at least three (3) specific techniques/actions from the operations management portfolio that you can apply to improve the cash flow situation: 1. 2. 3.. 3) SPACE-X company procured 150,000 generator turbine blades for $950 each and 3,000 turbine discs for $14,700 each in 2018. These parts are used to build the power turbine assembly. Based on the marketing forecast, Sourcing expects to buy 175,000 units of generator turbine blades and 3,500 units of turbine discs in 2019. Expected purchase price in 2019 is $890 per unit for the blades and $14,980 per unit for the discs. a. What is expected 2019 total price deflation or inflation in USD) b. Will the business experience the cost inflation or deflation of the power turbine assembly
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