captive supply

{{Short description|Economics concept}}{{Expert needed|economics

| date = August 2024

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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.{{Cite web |last=Ward |first=Clement E. |last2=Schroeder |first2=Ted C. |title=Captive Supplies and Their Impacts |url=https://www.uwagec.org/riskmgt/MarketRisk/CaptiveSupliesadntheirImpacts.pdf |access-date=12 August 2024 |website=uwagec.org |publisher=Oklahoma Cooperative Extension Service • Division of Agricultural Sciences and Natural Resources}}