In this paper we introduce the capacitated warehouse location model with risk pooling and coverage radius (CLMRPCR). The CLMRPCR models a logistic system in which a single plant ships one type of product to a set of retailers, each with an uncertain demand, through the capacitated warehouses. The newly important issue is considered in this model, is considering coverage radius which is extremely important for some pragmatic cases. The CLMRPCR minimizes the sum of the fixed facility location costs, transportation costs and safety stock and working inventory costs. This model simultaneously determines warehouse location, assignment of retailers to warehouses, shipment sizes from the plant to warehouses, working inventory and safety stock levels at the warehouses considering the coverage radius each DC could service a retailer. We show that this problem can be formulated as a nonlinear integer program in which the objective function is neither concave nor convex. Resorting to a recent work, a Lagrangian relaxation solution algorithm is proposed. This algorithm provides near-optimal solutions with reasonable computational requirements for large problem instances.