【正文】 roaches and measures。 one of which has been Cash Conversion Cycle (CCC). Cash Conversion Cycle is a metric that measures the time elapsed from the payment to the suppliers till the receipt of money from the customers. Thus it is a two dimensional concept that incorporates time and financial considerations simultaneously. In that respect it enables panies to integrate the operational scheduling with the financial scheduling.When the ponents of the CCC are examined separately。 first two are related to timing of cash inflows and outflows and the third is related to firm’s operations policy, it is a bridging measurement between operational and financial planning. Also, since CCC is the time passed from cash outflow to cash inflow, it measures how long the firm needs outside financing. Thus many scholars (Farris and Hutchison (2002), Soenen (1993), Binti Mohamad and Binti Mohd Saad (2010)) stated that the shorter CCC the better the pany finances are. However, there are some plications regarding the Cash Conversion Cycle metric approach in financial management of supply chains. Even though supply chain partners put considerable efforts to have control over the stream of cash inflow by managing payment terms, these cash inflows are mostly probabilistic due to unpredictable conditions of the downstream players. On the other hand cash outflows to the upper layers of the chain is deterministic。 shortening the Lead Time decreases cost of borrowing, and also it enables the pany to deliver the products or services sooner。 therefore the average inventory held by the firm over the year, and corresponding holding cost increase. Apart from the physical cost of inventory holding, higher obsolescence cost related to higher levels of inventory should be taken into account in case of change in technology or new trends in demand. What is more, opportunity cost is another side of the inventory holding in the sense that the capital is tied to inventory rather than other moneymaking investments. Lead Time crashing cost: Firms can shorten the time needed to produce and deliver the products to customers but this can be done at a cost known as reduction or crashing cost. Lead Time vs. crashing cost graph is negative exponential (decreasing function). Crashing process starts with the longest lead (processing) time for the activities which corresponds to the least cost, then as the Lead Time is reduced the cost increases exponentially as illustrated in Figure 3. Consequently, the total Lead Time can be deposed into ponents depending on the amount invested in reducing/crashing the Lead Time.Cash to Cash cycle, which is first defined by Gitman (1974) was further examined by Gallinger (1997) as the length of the period that the firm39。 “You can think of the operating cycle as the number of days sales are invested in inventories and receivables39。 (Gallinger, 1997). As seen from Gallinger’s definition longer Cash Conversion Cycles damage pany finances in terms of cost of borrowing/ financing the necessary funds. Thus, shortening the CCC is a key metric for the pany financial management. In that sense, further analysis of the CCC made by Soenen (1993) deposes it into three sections:1. The length of the credit term that the pany gets from its suppliers, 2. The length of the production process, and 3. The number of days the final products remains in inventory before they are sold. So, in this study we are going to examine the effects of leadtime reduction。 therefore the process of converting inputs into outputs (manufacturing time) takes a shorter period of time. Thus the key to achieve time pression is getting rid of wasted time and rearranging the sequence of the activities accordingly. However Beesley draws attention to a very important fact that the logistical strategies are most effective when applied to the supply chain in its broadest context where the scope of supply chain is anything that converts a resource into a delivered, consumable product or service. This is called the “holistic approach” or a total system view according to Beesley. So, according to him in his paper “ Time pression in the Supply Chain”, petitiveness should e from the whole supply chain system, not just from the pany (producer) itself. Besides shortening the Lead Time another way to improve the Cash Conversion Cycle is extending the average accounts payable term according to Farris and Hutchison (2002). Since it is the time elapsed between issuance of the debt and the cash outflow, longer payable terms enables panies to obtain interestfree financing. However Farris and Hutchison omit the penalty that the manufacturers may charge for a longer payment term, which will increase the cash outflows. What is more, when stating the primary leverage points to manage CCC, they put emphasis on reducing the average accounts receivable term however in order to encourage the downstream partners of supply chain to make early payments, the pany should offer discount, which in turn reduces the amount of cash inflows. And finally, reducing the total Lead Time is not free of charge to panies. In that sense Nobanee (2009) worked on an improved way of modeling the optimal CCC for supply chains where he defines the optimal CCC as follows, See Figure 1: Optimal Cash Conversion Cycle = Optimal Inventory Conversion Period + Optimal Receivable Collection Period – Optimal Payable Deferral Period. As seen from Nobanee’s equations pressing each ponent to its shortest time will not necessarily lead to better financial results. The optimal points should be found for each ponent of the lead