Decoupling inventory is the term used when product manufacturers set aside extra raw materials or work in progress items for all or some stages in a production line, so that a low-stock situation or breakdown at one stage doesn't slow or stop operations whereas Geographical specialization in regards to inventory involves maximizing the assets of each of the business' locations. Factors to consider include energy costs, location, labor and transportation. For example, a manufacturing company will want to locate in an area where it can distribute its product for the least amount of money. If it uses the railroad, distribution of the inventory near a railroad is wiser than a remote distribution center 100 miles away