Supply Chain Foundations and Performance Drivers Assessment
Module 1 • 10 Questions
Question 1 of 10
0 of 10 answered
In 2009 Amazon reported Weeks Payable of 20.18, Weeks in Inventory of 5.95, and Weeks Receivable of 2.7. Using the cash-to-cash formula from the notes, what was Amazon's C2C cycle and what does it imply?
A
C2C = +11.53 weeks; Amazon paid suppliers 11.53 weeks before collecting from customers.
B
C2C = +28.83 weeks; Amazon tied up cash in working capital for nearly 29 weeks.
C
C2C = -11.53 weeks; Amazon collected cash from customers more than 11 weeks before paying suppliers, effectively using supplier money as working capital financing.
D
C2C = -20.18 weeks; the cycle simply equals negative weeks payable regardless of inventory and receivables.