Answer to Question #207997 in Microeconomics for Hulani

Question

On contrary, why should retailers such as fruit and veg not keep too much inventory? 

Answer 1

Fruits and vegetables are perishable goods that must be handled with care. As a result, retailers don't need to store as much inventory as they once did, but they do need to consider various inventory management strategies to meet the needs of their customers. Rather than having too much inventory, retailers of these products should design replenishment strategies that will result in more consumer satisfaction and less waste.