Dynamic Inventory Allocation

Dynamic inventory allocation is an inventory management method that is responsive to several factors, including consumer demand and market trends.

What Is Dynamic Inventory Allocation?

Rather than applying the same inventory and order fulfillment process to every product in a brand's category, dynamic inventory allocation is responsive to market trends and customer demand. It reacts in real time to shift inventory allocations and product replenishment according to demand and forecasting data. Many dynamic inventory allocation technologies use predictive modeling to evaluate future demand and make informed inventory purchasing decisions. Because dynamic inventory allocation is more flexible and responsive to a brand's needs, it often streamlines inventory management processes and saves the brand considerable money by avoiding stockouts or overstocking.

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