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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.).