During the phase of inflation the demand for the product increase so the working capital requirement significantly increase.what actions should be taken to coop up with the situation?

To cope with increased working capital requirements during inflation, businesses should optimize their inventory management to reduce excess stock and improve turnover rates. Additionally, they can negotiate better payment terms with suppliers to extend payment periods while managing cash flow. Exploring financing options, such as short-term loans or lines of credit, can also help bridge the gap in working capital. Lastly, reviewing pricing strategies to ensure they keep pace with inflation can help maintain profit margins.