Which process involves distributing merchandise to various retail locations?

The process of allocation is critical in retail operations, as it specifically refers to the distribution of merchandise to various retail locations based on factors such as demand, sales forecasts, and inventory levels. Effective allocation ensures that each store receives the right quantity and type of products to meet customer needs and maximize sales potential. This process takes into account the specific characteristics of each location, allowing retailers to respond to local market conditions and consumer preferences.

While distribution is a broader term that encompasses the entire process of delivering goods from suppliers to retailers, allocation focuses specifically on how that inventory is divided and sent to individual stores. This focused approach is what makes allocation a key part of inventory management. Additionally, selection refers to the process of choosing which products will be available for sale, and markdowns relate to reducing prices on products to encourage sales, neither of which directly address the distribution of merchandise to different locations.