REPLENISHMENT · EXPERT PERSPECTIVE
When central warehouse stock is limited, how should stores be allocated?
A recurring allocation decision
When central stock is insufficient, should priority go to the strongest-selling stores or those facing shortages? Should stock be shared evenly or concentrated to protect sales opportunities? Supply teams face these questions regularly.
Allocate against SKU and store needs
Do not base allocation only on the requests stores submit. Review sales rates, available stock, inbound stock and the next delivery schedule for each SKU at each store. The SKU × store data set can be large, while supply teams must work quickly enough for the warehouse to sort and dispatch. This is both a calculation and an execution-timing problem.
Agree rules before running a tool
When every request cannot be fulfilled, clear priorities prevent allocation from following whichever store calls most often. Agree which sales demand to protect when supply is limited, the cut-off time for available and inbound stock, each store’s next delivery, and who may adjust the proposal or approve exceptions.
Do not let exceptions become constant manual adjustments
Promotions, seasonality, new stores and sudden demand changes can make normal rules unsuitable. Teams must still intervene when the system cannot handle them. Each retail model has its own allocation rules and data. Replenishment tools need to reflect that reality, with item data standardized and allocation logic checked before use.
From a spreadsheet proposal to goods leaving the warehouse
Inventory changes continuously. Reducing the delay between calculation and delivery helps keep the proposal relevant at execution. A tool can calculate and recommend; reliable data, agreed rules and coordination among supply, the warehouse and stores turn that proposal into an operational decision.
Choose your starting point
Is the difficulty calculating quantities, managing exceptions or passing the plan to the warehouse? That is a useful place to begin the review.
English translation/adaptation of the Vietnamese article. Read the author’s original LinkedIn post ↗