| Article ID: | iaor20121923 |
| Volume: | 40 |
| Issue: | 2 |
| Start Page Number: | 96 |
| End Page Number: | 98 |
| Publication Date: | Mar 2012 |
| Journal: | Operations Research Letters |
| Authors: | Zhang Jun, Li Meng |
| Keywords: | simulation: applications, combinatorial optimization |
We study the risk pooling problem in a two‐location inventory system, and analytically demonstrate that pooling improves the Type‐I service levels at both locations. We also present an example showing that pooling may reduce the Type‐II service levels at both locations.