Inventory allocation assigns available stock to orders or other demand. In this context it distributes goods, rather than allocating accounting costs.[1]
When supply is scarce, a merchant might prioritise confirmed customer orders before replenishing another channel. Document the allocation rules. Whether an allocation also creates a firm reservation depends on the system; assignment and an enforceable stock hold should not be assumed identical.
Content updated:
Sources
Compiled with AI assistance using public sources. General explanation, not individual legal or tax advice. Describing a concept does not mean Zoloo offers it as a feature.