In fashion retail, allocating or distributing products to various stores/channels is an important and challenging task. The importance of fashion allocation optimisation is crucial in a multi-store and multi-product environment.
In addition, demand uncertainties combined with the business constraints of inventory, store parameters, etc. make the problem challenging. Above all, the goal is to ensure high product availability and to minimise overstock and out-of-stock occasions.
Fashion items suffer a strong depreciation over time. The unsold stock sells at steep discounts impacting contribution margins. Therefore, the demand-supply mismatch is very important and a must-solve problem in the last leg of the supply chain.
In this edit we look at how bees are an inspiration for fashion allocation optimisation.
If this is a challenge you would like to work on and convert to an opportunity, read on.