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Consider a job shop currently dedicated to two customer orders in the coming year. Job 1 takes 5 days to process and job 2 takes

Consider a job shop currently dedicated to two customer orders in the coming year. Job 1 takes 5 days to process and job 2 takes 8 days. The company paid the materials for both jobs 1 day after the start of processing. The customer for job 1 pays the immediately upon the completion of the job, while customer for job 2 pays 1 day before the completion of the job. The cost and revenue for the jobs are listed below.

Job 1 Job 2
Processing time 5 8
Time to pay 1 1
Amount to pay $3 $7
Time to receive 0 -1
Amount to receive $7 $8

The cash to cash cycle for the job shop in the coming year is

Below 3 days

3.0 3.4 days

3.5 3.9 days

4.0 - 4.4 days

4.5 4.9 days

5 5.4 days

5.5 6 days

Above 6 days

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