Holding safety stock inventory in one central location rather than in multiple locations is called:

Question

Quizplus · Accepted Answer

When safety stock inventory is held in one central location rather than in multiple locations, it is called risk pooling. This strategy helps to reduce the overall inventory levels while still maintaining adequate levels of safety stock to mitigate against supply chain disruptions. By consolidating safety stock inventory in one location, companies can take advantage of economies of scale and improve their ability to respond quickly to unexpected demand or supply variability.

Holding Safety Stock Inventory in One Central Location Rather Than