APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 28

An operations manager in concerned that the order-to-cash cycle for their largest customer is too long. The manager is referring to the time that elapses from when the company receives an order from the customer until the:

Answer options

• A. customer processes payment.
• B. warehouse in notified to ship the goods.
• C. customer receives that order in inventory.
• D. company receives payment.

Correct answer: C

Explanation

The correct answer is C because the order-to-cash cycle concludes when the customer receives the order in inventory, marking the end of the process. Options A and D refer to payment processing, which occurs after the order is fulfilled, while option B pertains to the shipping notification, which is an earlier step in the cycle.