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PseudonymIncognito t1_ja8nopr wrote

Reply to comment by lessmiserables in ELI5: why do grocery stores in the US keep such a large inventory? Aside from being prepared for episodic panic buying like toilet paper or bottled water, is there an economic reason to do this? How much of the food ends up going bad? by DrEverythingBAlright

The other interesting thing that I learned from someone in the business is that a healthy grocery store will have its inventory turns shorter than its credit terms (i.e. by the time they have to pay for their inventory, they've already sold it).

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