Yes, in a sense. Flour and other inputs cost roughly 7% of the final price of a bread in Germany. The bulk of the cost is for equipment from kneading machines

Yes, in a sense. Flour and other inputs cost roughly 7% of the final price of a bread in Germany. The bulk of the cost is for equipment from kneading machines to delivery vans, salaries, rents and so on. So if you're a baker and have a bread oven with a capacity to bake 1000 loaves of a particular kind of bread and you typically sell 700-800, it makes sense to bake 800 every day and expect to discard 50 on average. You don't know whether tomorrow is a day on which customers will walk into your shops and ask for 800 of that bread. You can try to guess (and bakers do) but you don't know. Your loss if you bake 800 and sell 700 is only 7% of the income you forgo by baking 700 if customers ask for 800, so it makes sense to bake a few more than you're likely to sell, and plan to throw those away.