Pooling in Supply Chains

One of the keyways to mitigate the effects of uncertainty in customer demand is through implementing a system design that is based on the concept of pooling, which we introduce in the third chapter. When designing a multi-stage supply chain, such as operated by Amazon, decisions must be made about what items, in what quantities should be stocked at each location in the system. After introducing the roles inventories play in these systems, we demonstrate the importance of pooling in a simple system, and then study the effective use of pooling in automotive and on-line retail environments. An important example of the importance of pooling is presented in the final chapter where we discuss the design and operation of a system for distributing vaccines during a pandemic.