  This study focuses on the inventory pooling problem under the newsvendor
framework. The specific focus is the change in inventory levels when product
inventories are pooled. We provide analytical conditions under which an
increase (or decrease) in the total inventory levels should be expected. We
introduce the copula framework to model a wide range of dependence structures
between pooled demands, and provide a numerical study that gives valuable
insights into the effect of marginal demand distributions and dependence
structure on the effect of pooling to inventory levels.
