Supply Chain Glossary - R

Supply Chain Glossary - R

risk management planning

The process of defining how to identify and minimize risk factors for a project.

The process of reducing the risk among customers by pooling stock in centralized warehouses. Statistically speaking, when one customer demands a large amount of a particular product, another customer demands only a little of the same product. The total inventory to maintain the customer service level is smaller, on average, with a centralized warehouse because the risk of a product stockout is pooled across all the customers.


close

Demand Management, Inc. Cookie Policy

We have published a new cookie policy. It explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our cookie policy.

If you'd like to disable cookies on this device, please view our information pages on 'How to manage cookies'. Please be aware that parts of the site will not function correctly if you disable cookies.

By closing this message, you consent to our use of cookies on this device in accordance with our cookie policy unless you have disabled them.