Is Total Net Working Capital or Incremental Net Working Capital

question 60

Essay

Is total net working capital or incremental net working capital more relevant for calculation of free cash flow?

---

Definitions:

Constraints

Limitations or restrictions that affect the development, operation, or outcome of a process or system.

Supply Chain Management

The oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer.

Aggregate Planning

A marketing activity that involves developing, maintaining and analyzing broad, long-term operational schedules that facilitate decision-making processes.

Enterprise

describes a large, complex business or organization that engages in commercial, industrial, or professional activities.