Finance:Captive supply

From HandWiki
Short description: Economics concept

Captive supply is that part of the supply that is not owned by a company but is used by the company to maximize its own profits. Typically applied in the meat-packing industry, it is when a company agrees to purchase goods at least two weeks in the future rather than immediately.[1]

References

  1. Ward, Clement E.; Schroeder, Ted C.. "Captive Supplies and Their Impacts". Oklahoma Cooperative Extension Service • Division of Agricultural Sciences and Natural Resources. https://www.uwagec.org/riskmgt/MarketRisk/CaptiveSupliesadntheirImpacts.pdf.