The relationship between the number of warehouses, system inventories, and customer service is referred to as _______.
A) risk pooling
B) risk aggregating
C) risk monitoring
D) risk division

Question

Quizplus · Accepted Answer

The relationship between the number of warehouses, system inventories, and customer service is referred to as risk pooling. This concept involves consolidating inventory across multiple locations to reduce the impact of demand variability and minimize stockouts. This allows companies to offer better customer service by ensuring that products are available when customers need them.

The Relationship Between the Number of Warehouses, System Inventories, and Customer