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Working Capital Calculation of Optimal Part I:

Working capital is simply the difference between Acte-CETP, then an optimal level should ensure the following:

optimal level Assets: Cash, Accounts Receivable, Inventory.

• Box Level: Minimum levels to ensure operations and contingencies.
• Accounts receivable collection period acceptable by the market and minimized.
  
• Inventories enough to meet demand (not broken stocks)
  

optimal level of liabilities: Not to be giving rise to such high costs. Negotiate

• longer terms of payment.
  
• Maximum levels of short-term debt, so that matching of debt payments.
  

Finally find optimal level involves setting policies and controls in daily operations.
Here is a video that complements the theme of this post.