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Unformatted text preview: With that in mind it is understandable that a company would like to reduce its cash conversion cycle. According to Easton et al., a company can apply various measures in order to reduce operating cycles. For example they can implement better collection procedures, reduce inventory levels or increase trade credit to minimize cash investment for inventory. These actions however could affect a companys relations with both suppliers and customers. Better collection procedures could interfere with a customers own operating cycle forcing them to make adjustments. A reduced inventory level could interfere with the companys ability to supply a customers need in a prompt manner while minimizing cash payments for inventory could affect the suppliers side of the equation....
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- Spring '09