First. It’s useful to consider how governmental policies contributed to consumer panic. The policy responses of 2020’s COVID-19 had focused on the containment of viral transmissions via movement restrictions and efforts to prop up the economy. Consumers had responded to this policy ‘response’ by stocking up on facial tissues and other household paper products.

2020 Panic Buying Triggers

In 2020. The 2 main economic triggers for a jump in optimal inventory holdings in a crisis situation.

The first inventory trigger was any Governmental restriction on movement that increased the cost of store visits.

The second inventory trigger was when the crisis leads to higher than expected future pricing, making those existing prices look like a “deal” that called for stocking up as essential behavior.

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