On average,a retailer keeps 15 days worth of average sales in inventory on hand.It takes the supplier 10 days to deliver merchandise;therefore,the retailer has up to 5 days to process and order (or risk being out-of-stock).

Question

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The given statement is true. The retailer needs to keep 15 days of inventory on hand because it takes the supplier 10 days to deliver merchandise. This leaves the retailer with 5 days to process the order before they run out of stock.

On Average,a Retailer Keeps 15 Days Worth of Average Sales