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DewDiligence

06/30/13 1:40 PM

#10668 RE: franzo62 #10666

what does "channel stocking" exactly mean?

It mean increasing the amount of distributor inventory for a given product, which has the effect of boosting sales during the current reporting period at the expense of lowering sales during subsequent periods (because distributors can satisfy more end-user demand from their own inventory).

Channel destocking is the reverse process—it lowers current sales but tends to increase sales in future reporting periods.