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The primary subject matter of this case concerns establishing a rationale for making a decision on whether to change to centralized distribution or to continue with the decentralized distribution based the total cost. The case narrative describes a decision scenario and presents a problematic decision analysis requiring the application of different Operations Management techniques. This case is designed to help students develop a working understanding of the solution method for risk pooling problem and its use for managerial purposes. The case will enable students to comprehend and formulate a model pertaining to inventory cost, transportation cost, lead time, safety stock, dealer demand, and their effects on the centralization/decentralization decision. This hypothetical risk pooling case requires students to apply solution methods for risk pooling problems. It is designed to be taught in two class hours and is expected to take approximately four hours of student preparation time. It can be used in an operations management, supply chain management course for learning purposes.