Question

__________ is holding safety stock in a single location instead of multiple locations. several locations then share safety stock inventories to lower overall holding costs by reducing overall safety stock levels.

Answer 1

Inventory pooling is holding safety stock in a single location instead of multiple locations.

Business do this so that they save money having warehouses all over to house inventory. There are few locations that will hold the inventory and when it is ordered/needed ships and disperses from one or few centralized locations. They are able to keep the space cost down and employee levels are lower.