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Safety inventory is carried because
Concentrated
A market structure described by a small number of firms holding a large market share, which can lead to reduced competition.
HHI
The Herfindahl-Hirschman Index, a measure of market concentration used to determine the competitiveness of an industry.
Conglomerate Mergers
Conglomerate mergers involve companies from unrelated industries combining, aiming for diversification to reduce risk.
Vertical
Pertaining to the organization of a supply chain where a company controls multiple stages of production or distribution.
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Q65: W.W. Grainger and McMaster Carr stock products