Which of the following methods is most often used to manage inventory planning variability across...

Risk pooling reduces inventory variability by aggregating demand across multiple locations or products. This strategy lowers safety stock requirements while maintaining service levels. It is widely used in inventory planning to counter variability due to uncertain demand patterns across the supply chain.

“Risk pooling is most effective in reducing inventory and managing variability because demand uncertainties across regions can offset each other when aggregated.”

— APICS Dictionary, 16th edition; also referenced in MRP material on inventory strategies