From Stockouts to Surplus: Navigating the complexities of Modern Allocation & Replenishment

This thesis investigates the role of Allocation and Replenishment (A&R) processes in enhancing the operational efficiency of modern supply chains, especially in sectors marked by volatile demand and complex assortments. Despite the growing strategic relevance of A&R in supply chain planning, few empirical studies integrate both theoretical modeling and practical applications. Adopting a mixed approach, this study combines a literature review with the analysis of a real-world case involving the company Star, a firm operating in a dynamic retail environment. Findings draw upon the development and implementation of a customized A&R model designed by the consulting firm I work for to address critical issues such as stockouts, overstock, and planning responsiveness. The research applies a single-case study methodology and a qualitative-empirical framework, relying on company data and direct observation to validate the model’s effectiveness. The analysis further explores the technological dimension of A&R through the adoption of the Board platform, highlighting its integration capabilities and its contribution to process automation and decision-making optimization. Results demonstrate the positive impact of the implemented tool on inventory efficiency, system flexibility, and data-driven planning. Finally, the thesis contrasts academic theory with business practice, identifying key discrepancies between model-based solutions and operational execution. This reflection supports the need for more adaptive and execution-oriented A&R frameworks. The contribution of this study lies in bridging theoretical models with practical application and offering insights into the transformative role of technology in supply chain planning.