Electrical terminal blocks (also known as terminal junction blocks, junction blocks, or barrier blocks) are devices used for safely, conveniently and efficiently connecting together one or more pairs of wires or cables. They are typically purchased in large amounts in B2B channels. Pricing is extremely competitive due to the large number of worldwide manufacturers of electrical terminal blocks. A local electronic parts distributor, Three Rivers Electrical Distribution (TRED) has been reviewing its inventory policy regarding electrical terminal blocks. The distributor knows there are two other major local distributors and large regional competitors in Cleveland and Philadelphia. Due to the competitive situation, most purchasers of electrical terminal blocks treat them as commodity goods. If an order or part of an order is back ordered they will not wait. They will simply order from another distributor to fulfill the desired quantity. According to TREDs inventory and shipping records, this year they will fill 91.5% of the electrical terminal block orders they receive. Although they also benefit from the buyers switching behavior (i.e., sometimes they are the secondary source that provides the complementary shipment to complete a desired quantity), management is wondering if they should make a greater effort to capture the 8.5% of lost sales? Identify and discuss the major factors TRED management should take into consideration concerning this decision.