Allocation
Allocation is the decision of how to split a buy across locations or channels — which stores, sizes, and quantities receive each style. Good allocation puts the right depth where demand is, to the size curve, rather than spreading evenly.
Allocation is where the buy meets reality: the same total units allocated to the wrong stores or sizes produces stock-outs in some places and markdowns in others. It depends on demand by location and an accurate size curve.
In a connected plan, allocation and replenishment share the same demand signal, so what ships and what refills both track the curve.
See also
RetailNorthstar puts these metrics where planning decisions happen — connected to one plan, live against actuals.
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