Assitant professor, Department of industrial & production engineering, IERT, Allahabad, (Engineering Degree Division)
Online published on 20 September, 2016.
Net operating cycle (NOC) is very important in measuring the overall operational efficiency of the firm. The elements of Net operating cycle [i.e. Inventory Conversion Period (ICP), Accounts Receivable Period (ARP) and Accounts Payable Period (APP)] also represent efficiency related to in-house and out-bound activities of the firm. NOC metric is an important measure as it bridges across inbound material activities with suppliers, through manufacturing operations, and the outbound logistics and sales activities with customers. In this study an effort has been made to find the impact of NOC and its components (i.e. ARP, ICP and APP) on size of the firm by investigating a sample of 4322 manufacturing firms over a period of 10 years (i.e. 2002–2003 to 2011–2012).
Net Operating Cycle, Inventory Conversion Period, Accounts Receivable Period, Accounts Payable Period, Size
