How does risk pooling affect inventory levels when a company uses fewer and centralized warehouses? Please explain.

In simple words, Inventory risk pooling is the concept that the variability in demand for raw materials is reduced by aggregating demand across multiple products. When properly employed, a business can use risk pooling to maintain lower inventory levels while still avoiding stock out conditions. Although for preventing stock out situation a company need warehouses where they can keep supply sufficient for emergency conditions.

d. automatic stabilizers.

explanation:

answerangel investor;