Allocation – Understanding The Basics

by Columbus Consulting

At its core, allocation is the optimal deployment of inventory to best meet customer demand. It is usually the last step in the merchandise lifecycle before the sale. Allocation originated from merchandising, when the merchant’s assistant was responsible for tracking purchase orders (POs) and getting the products into the right store. As retailers became larger, with an expanding store base and a corresponding increase in complexity, allocation became its own specialized function.

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