The relationship between manufacturers, wholesalers, and end customers has been well documented over the last many decades. To speed the delivery of products to end users, wholesalers preemptively store finished products for quick sale. At the same time, wholesalers can decide whether or not to order replacement inventory from manufacturers which results in further orders to their suppliers.
This movement of orders and materials takes time which can be a risk for both manufacturers and wholesalers when economic market conditions rapidly change.
Read more here.
https://www.constructconnect.com/construction-economic-news/balancing-supplies-relative-to-sales
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