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.

(i know i'm late but the answer's "things about yourself" because you want to list things you're capable of, why you want to open up the business, the amount of money you're putting into it,etc.) i'm guessing you take online school small business, the answers to the quizzes are all over quizlet. just look up your question and type quizlet after it and it'll pop up.