How do I allocate inventory across channels?

Decide whether each channel gets a reserved pool or draws from one shared pool. Reserving protects a wholesale commitment from being sold out by DTC, at the cost of stranding units that another channel could have sold. A shared pool maximises sell-through and risks missing a retail order. Most brands reserve against committed purchase orders and share the rest.

The decision is really about which channel you are willing to disappoint. A retail chargeback for a short shipment costs more than a DTC backorder, which is why committed wholesale quantities are usually ring-fenced first.

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