HomeOperations ResearchRisk Pooling: Safety Stock & the Square Root Law

Risk Pooling: Safety Stock & the Square Root Law

Interactive 3D inventory simulator: watch N independent warehouses vs. one pooled distribution center absorb random demand, and see why consolidating stock cuts total safety stock by the square-root law.

Operations Research3DModerate60 FPS
supply-chain-optimization ↗ Open standalone

A live 3D warehouse simulator that puts the central trade-off of supply-chain network design under your control: should each region hold its own inventory buffer, or should everyone draw from one consolidated distribution center? Each period, every site draws a random demand from a Normal distribution, silo stock levels rise and fall in real time, and a base-stock replenishment policy tops each one back up to a target that includes a safety-stock buffer sized from your chosen service level. Toggling to Pooled mode merges the independent demand streams into a single buffer and applies the square-root-law formula, so you can watch the total safety stock — and the stockout rate — respond exactly as queueing and inventory theory predict.

⚙ Under the hood

A live 3D inventory simulator comparing N independent warehouses against one pooled distribution center under random demand, showing how consolidating stock cuts total safety stock by the square-root law.

supply chaininventoryoperations researchrisk poolingsafety stocklogistics

3D · Three.js / WebGL renderer · 60 FPS target · runs fully client-side, no install

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