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Inventory and the Cash Conversion Cycle

A short apparel brand decision problem. Use the supplied facts, commit to one action, then check your reasoning. Fictional practice; no leaderboard score is recorded.

Apparel brand · cash conversion cycle

You pay factories 100% up front. Goods take 60 days to arrive, sit in the warehouse about 45 days, and wholesale customers pay 60 days after delivery. The business is profitable and orders are doubling.

Given factScenario data
Supplier payment100% up front
Inbound transit60 days
Time in warehouseAbout 45 days
Customer payment after delivery60 days
OrdersDoubling
What is the first thing to change?

Choose an action, then lock it in to reveal the reasoning. This is untimed practice.

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How to Improve Cash Flow in a Small Business

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