Wholesale inventory

-Wholesaler purchases large quantities from manufacturers and sells small quantities to retailers in order to provide retail customers with assorted merchandise from different manufacturers in smaller quantities.
-Thus wholesaler risk exposure is narrower but deeper and of longer duration than that of retailers.
-In case of seasonal goods, the wholesaler is forced to commit inventory, far in advance of selling, thus increasing the depth and duration of risk.
-The current trend of expansion of product lines has increased the width of inventory risk.
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