Key Topics: Working capital management, inventory optimization, accounts receivable improvement, and foreign currency risk management.

Models Covered: Economic order quantity (EOQ), credit control strategies, and hedging techniques.

Description: This case focuses on PKA Co’s working capital management, including optimizing inventory levels using EOQ, reducing accounts receivable collection periods, and managing foreign exchange risks related to international supplier payments. It evaluates strategies like forward market hedging and money market hedging to mitigate currency risk, while also identifying potential conflicts between working capital objectives and operational efficiency.