Abstract-Nowadays wireless communications still lack the ability to provide high reliability and low latency, although mission-critical applications, such as found in industrial automation, rely on both requirements. The main challenge is that an improved reliability often comes at the price of an increased latency. It has been shown that cooperative schemes can effectively increase the reliability by leveraging spatial diversity. However, an important question remains how to integrate cooperative schemes when dealing with very short latency bounds and especially how much time should be reserved for potential retransmissions. In this work, we propose and evaluate a centralized communication system that uses cooperative ARQ to achieve high reliability under the constraint of a strict latency bound of 1 ms. We evaluate this system analytically, using an outage-capacity model with average channel state information, by varying the reserved time for retransmissions, where a shorter time for retransmissions allows to apply stronger channel codes in the original transmission. As a baseline, we use a system without cooperation mechanism, thus applying the given time for stronger channel codes in the direct transmission of a message. In case of cooperation, a third station may act as a relay if the original transmission failed. Our results reveal that an optimal size of the reserved retransmission time exists around 15% to 30% of the total frame time, increasing the reliability by several orders of magnitude, even for a large number of transmissions within a communication cycle.