Allocation rule generation enables you in a single step to create a number of allocation rules in the background.

The group of sites you enter defines which sites are to be used in the allocation rules generated. Allocation rules can be generated for merchandise categories, hierarchy levels or articles. The quota each site receives is defined in the allocation rules based on the key figures in the Retail Information System (RIS).

To determine the quota to be allocated to a site in an allocation rule, the system first reads a key figure (for example, sales including sales tax) for a merchandise category in a site. When you call up the generation program, you enter a key figure category. The category chosen determines which key figure is to be used from the short-term retail profitability analysis.

The system can use the key figures in one of two ways to calculate the quota which the site is to receive:

• Individual Site Quota Allocation
• Allocation Category Assignment

Before you can generate allocation rules, there has to be statistics in the RIS.

The key figure for a merchandise category in a site is used as the quota (and is interpreted as a ratio or fixed quantity). If, for example, the key figure "Sales" is used, the sales figure for a site is taken as the site quota. This enables stocks to be split according to sales figures achieved.

In this case sites are put into site groups (allocation categories) based on the key figures and a model allocation rule already in the system. The number of allocation categories to be formed and the quotas allocated to each site in an allocation strategy originate in the model allocation rule.

The allocation categories are created in set ratios to each other. An algorithm is used to calculate different interval limits from the ratios entered so that sites can then be assigned to these intervals. First the key figures for the individual sites are determined from the Retail Information System (RIS). Based on the key figures, sites are then assigned to an interval (or to an allocation category). The interval limits are used to calculate the value of each category and are used as the quota for each site. All the sites in an allocation category thus receive the same quota.

When allocation categories are used, only the quota category "Ratio" is allowed. Allocation rules cannot therefore be generated with the quota category "fixed quantity".

Allocation categories are defined with the help of model allocation rules. A model allocation rule is created in a similar way to a standard allocation rule, but site groups are entered as required allocation categories with a description of your choice.

You indicate in the header that the rule is a model and the rule is then automatically fixed and the link to the Classification system broken. This allows you to prevent the system checking if every category exists as a site group in the Classification system.

You also have to enter a merchandise category or an article so that when allocation rules are generated the model allocation rule can be found.

The allocation category quota is interpreted by the system as the upper limit in an interval. The lower limit is the next smaller quota in another allocation category.