What is allocation and replenishment?

Allocation and replenishment are complementary. Allocation decides the initial push of how much of each item goes to which stores/DCs based on plan, capacity, and expected demand. Replenishment is the ongoing pull that keeps shelves in stock, setting service targets, EOQs, review cycles, and vendor/carton constraints by item-store. Modern solutions handle lifecycles (intro, active, markdown), promotions, and multi-echelon logic that reduces safety stock across DCs and stores. Done together, they lift availability, sell-through, and working-capital efficiency.