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.


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