First allocation logic
The First Allocation module assigns an initial amount of stock to stores when new products are introduced, considering all (sometimes conflicting) goals and constraints.
Goals
- To ensure enough stock is available at each store to cover demand for a selected period of time.
- To start “sensing demand”; to learn demand patterns that might be exploited later.
- To avoid overstocking of stores and overspending on logistics.
Constraints
- Respect for minimum display requirements.
- Ensuring of significant size set completion for a product in each store that has that product.
- Dealing with pre-packs and other logistic constraints.
- Other constraints specific to each client (specific commitments with franchisees, geographic allocation rules, etc.).