oPERATIONS MANAGEMENT

CONTENT

• The operating cycle

• Thew WCR : the meeting place of the various functions within the company (graph)

• The Operating Decisions and Working Capital Requirement (WCR) :

• The WCR
• How to calculate the WCR ?
• How to interpret a positive WCR ?
• How to interpret a negative WCR ?

• The key ratios of the Management of the WCR :

• The Management of the Inventory Turnover
• The Management of the Collection Period
• The Management of the Payment Period
• The Incidence of the WCR on the NCP

• Operating Cycle & ROA
• The impact of operating cycle on ROA

Roadmap to finance