Distributing available products among stores, markets or channels according to a plan or demand.
Allocation determines how limited stock is assigned to particular locations, channels or orders. A planner can compare available supply with merchandise plans, sales history or a demand forecast, then decide how much each destination should receive. The resulting quantities must fit the supply available and the routes through which products can reach their destinations. Allocation differs from forecasting because it assigns supply rather than estimating demand. It also differs from replenishment, which concerns restoring stock as it is used or sold.
In job listings
Chanel’s High End Collection Manager role in London required developing stock allocation models using boutique profiles, client potential, sales performance and business needs. The task illustrates how allocation translates differences between boutiques into decisions about where inventory should go, rather than simply dividing available pieces equally. Search local jobs for “allocation”.
