Case Study: Credit and Inventory Management at XYZ Company XYZ Company is a retail business that sells electronic devices. They offer credit options to customers who wish to purchase products on credit. The company is facing challenges in credit management and inventory control, impacting their profitability and cash flow. As a consultant, you have been hired to analyze the situation and provide recommendations for improving credit and inventory management practices. a) Evaluate the current credit management system at XYZ Company. Identify key issues or weaknesses in the system that may be contributing to high credit risk and late payments. Discuss the impact of these issues on the company’s cash flow and profitability. b) Analyze the inventory management practices at XYZ Company. Identify any issues or inefficiencies in inventory control that may be leading to stockouts, excess inventory, or increased carrying costs. Discuss the impact of these issues on customer satisfaction, sales, and overall profitability. c) Develop a comprehensive strategy for credit management at XYZ Company. Provide recommendations for improving credit assessment, credit terms, and collection practices. Discuss the potential benefits of implementing these strategies, such as reducing credit risk, improving cash flow, and maintaining customer relationships. d) Propose a robust inventory management system for XYZ Company. Outline the key elements of the system, including demand forecasting, order quantity determination, and inventory replenishment. Discuss the benefits of implementing such a system, such as reducing stockouts, minimizing excess inventory, and optimizing carrying costs. e) Explain the importance of integrating credit and inventory management at XYZ Company. Discuss how effective coordination between these two areas can lead to improved financial performance, reduced costs, and enhanced customer satisfaction. Provide examples or scenarios to support your explanation. Note: The answer to this case study question should demonstrate a comprehensive understanding of credit and inventory management principles, as well as the ability to apply them to real-world business scenarios. It should showcase the ability to analyze current practices, identify issues, and provide strategic recommendations for improvement.