Merchandise Allocation

Description

Merchandise Allocation Training Course

This module provides a comprehensive introduction to the key principles and concepts of allocation and its role in effective inventory management. The course explores the purpose of both allocation and replenishment, how they work together, and when each approach should be used. It also examines the details of different allocation algorithms, common allocation strategies, and how to manage more complex allocation scenarios.

Who Is It Suitable For?

This program is designed for:

Retail:

• Senior Merchandisers, Merchandisers, Assistant Merchandisers, Allocators, and Supply Chain Managers
• IT staff supporting merchandising systems

Consumer Goods:

• Category Management teams
• Retailer account managers involved in inventory management

Consultants, Systems Integrators, and Retail Software Providers: 

• Professionals engaged in inventory, allocation, and merchandising projects

Course Objectives

By the end of this program, learners will be able to;

• Identify the situations in which allocation should be used rather than replenishment to move inventory into stores or other locations
• Explain various ways to calculate allocation quantities for both new and established products
• List factors to be considered in deciding when to use allocation as the process
• Identify the ways to make sure that implementation is working smoothly or to make necessary adjustments

Detailed Content

Introduction to Allocation

• Allocation vs. Replenishment
• Allocation and Replenishment across the product lifecycle
• Allocation applications

Allocation Algorithms - New Products

• Planning initial allocations for new products
• Initial allocation quantity
• Initial allocation - Merchandise Management
• Initial allocation - Category Management
  • Optimizing initial allocation and reserve stock
• Pack size implications on allocation strategy
  • Import and distribution packaging
  • Solid packs vs. ratio packs
  • Aligning ratio packs with demand
  • Operational aspects
  • Rounding rules

Allocation Algorithms - In-Season

• Allocations reflecting inventory
• Adapting participation metrics to sales trends
• Promotions
• Rounding rules
• Last year's sales
• Unit sales
• Weeks of supply (WOS)

Allocation Algorithms - End of Season

• When should MINPRES be dropped
• Equal weeks cover method
• Equal weeks cover method applications

Allocation Strategies

• Common strategies for order allocation
• Pre-allocation vs. post-allocation
• Combining Pre- and Post-Allocation for Optimal Order Management
• Style vs. collection
• Proportional Allocation
• Seasonal vs. Basic
• Calculating Weeks of Supply (WOS)
• Weeks of Supply - Retailer's Lead Time
• Weeks of Supply - Vendor's Lead Time
• Weeks of Supply – Safety Stock

Each module has its own mastery test and learners that achieve a 70% pass mark and complete the end of class survey will receive a certificate on completion.  

Hours of Study

2 hours

Resources Included

The class includes the following downloadable resources for printing and review:

• Retail Knowledge Bank Merchandise Allocation links
• Merchandise Allocation Summary

Pre-Requisites Necessary

A basic understanding of key retail processes, such as taught in the Buying and Merchandising Overview module.

After This Program

The next logical program in developing learners’ knowledge is Merchandise Replenishment.