Submitted by DrEverythingBAlright t3_11danyo in explainlikeimfive
Shazam1269 t1_ja8b1tx wrote
Reply to comment by SmackEh 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
We called it Just in time inventory. Looked at historical movement while taking account for out of stock inventory. Our goal wasn't to have maximum possible stock, but enough stock as it's needed. That way we didn't carry excessive inventory, just what we would need when we needed it.
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