how huge food companies like Cargill and Mcdonald’s, etc. protect themselves from extreme price changes.

Question

how huge food companies like Cargill and Mcdonald’s, etc. protect themselves from extreme price changes.

In: 858

Answer 1

There have been many small to medium companies invest almost everyting into providing product to a large corporation. When the contract renewal came and they lost the bid, the companies went out of business. CEOs must have a limit on the amount of product to provide to any individual company Sometimes it can be very tempting to go beyond the limit.