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Decision chain · 04

Allocation and replenishment

Retail allocation decides where the initial units should go, while replenishment decides when and how much inventory to send after trading begins.

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A constrained decision

The best demand signal is not automatically the best shipment. Capacity, lead time, pack size, presentation minimums, available stock and service priorities all constrain the answer.

  • Initial allocation
  • Replenishment proposals
  • Store-to-store transfer review
  • Capacity and pack constraints

Refresh as sales arrive

New sales and stock positions change the imbalance. A connected workflow recalculates the proposal and records why a unit moved, was held or required approval.

Questions

What is the difference between allocation and replenishment?

Allocation distributes the initial available inventory. Replenishment responds to subsequent demand and stock changes during the selling period.

When is a transfer preferable to a reorder?

A transfer can be preferable when usable stock already exists elsewhere and moving it satisfies demand sooner or more economically than purchasing additional units.