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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.
References
- Ward, Clement E.; Schroeder, Ted C. "Captive Supplies and Their Impacts" (PDF). uwagec.org. Oklahoma Cooperative Extension Service • Division of Agricultural Sciences and Natural Resources. Retrieved 12 August 2024.
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