cash flow management in production

Cash flow management in production refers to the process of monitoring and controlling the money coming in and going out of a business that manufactures goods. It ensures that there’s enough cash to cover expenses like raw materials, labor, and overhead costs while also managing the timing of payments and receipts. Effective cash flow management helps prevent shortages, allowing a company to operate smoothly, invest in growth, and meet financial obligations. By balancing inflows from sales against outflows for production, businesses can maintain stability and sustainability in their operations.