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 fact | Scenario data |
|---|---|
| Supplier payment | 100% up front |
| Inbound transit | 60 days |
| Time in warehouse | About 45 days |
| Customer payment after delivery | 60 days |
| Orders | Doubling |