1. The following data were obtained from a recent quarterly report for Dell Computer (in millions):

Net revenue

$8,028

$6,580

Cost of revenue

Inventories:

Production materials

Work-in-process and finished goods

Accounts receivable

Accounts payable

Calculate the cash-to-cash cycle time for Dell.

$126

$224

$2,689

$4,326

2. Obtain from the Internet the current data needed to calculate cash-to-cash cycle time for Dell Computer, Gateway,

and Cisco Systems. Calculate the measure for each company and critically evaluate the differences in how the

companies operate their supply chains.

3. Evaluate the effect of the following changes that a company makes on cash-to-cash cycle time. Indicate simply the

direction of movement of the measurement (i.e., up, down or no change).

Reduction in cost-of-goods sold

More frequent deliveries from suppliers

Reductions in time customers are allowed to pay for goods

Change from paying suppliers on receipt of goods to waiting 60 days to pay suppliers

Write-off of obsolete inventory

Reduction in labor content in a production process

Outsourcing the production of a major product

4. Return to the Ajax sandwich example on page 17. Suppose that in addition to the 300 peanut butter and jelly

sandwiches to be delivered on Friday, Ajax also needs to make 2,000 sandwiches of other varieties. Assume that the

same amount of time is needed to assemble sandwiches and that each parttime student can work for five hours. How

many students are needed on Thursday?