What role in the channel of distribution does ACME provide when it purchases meat, dairy, and vegetables from local farmers and resells them to local restaurants?

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ACME operates as a wholesaler in this scenario because it purchases products in bulk from local farmers and then resells them to local restaurants. Wholesalers typically buy large quantities from producers (in this case, the local farmers) and sell them in smaller quantities to retailers or other businesses (such as restaurants). This process allows ACME to take advantage of economies of scale and provide an efficient supply chain solution by acting as an intermediary between producers and end users.

Furthermore, wholesalers often facilitate the distribution of goods by managing inventory and logistics, which is consistent with ACME’s role in sourcing fresh products from multiple suppliers and distributing them to various local restaurants. This contributes to the efficiency of the distribution channel by ensuring that restaurants have access to fresh and varied ingredients without having to deal with multiple individual suppliers directly.

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