# What is the difference between an Allocation Plan and a Replenishment Plan?

{% hint style="info" %}
**Quick Answer:** A **replenishment plan** determines *when and how much to reorder* from suppliers. An **allocation plan** determines *how to distribute existing inventory* across multiple locations. Both are created from the Production page in Moselle.
{% endhint %}

Both plan types are created as **production plans** in Moselle. When you click **Create Production Plan**, you choose which type fits your current need.

## Replenishment Plan

**A replenishment plan is** a demand-driven reorder strategy that identifies inventory at risk of stocking out and recommends how much to purchase and when.

Use a replenishment plan when you need to answer: *"What do I need to order — and when?"*

### When to Create a Replenishment Plan

* [ ] You are running low on stock and need to reorder from a supplier
* [ ] You want Moselle to flag at-risk items before they stock out
* [ ] You are planning purchase orders for an upcoming coverage period
* [ ] You want to set safety stock buffers and lead time constraints

### What a Replenishment Plan Does

* Analyzes your forecast and current inventory levels
* Identifies items at risk of stocking out within your coverage period
* Recommends order quantities and timing by SKU
* Feeds directly into the **Generate Orders** workflow to create purchase orders

{% content-ref url="../../planning-and-execution/replenishment/create-a-production-plan" %}
[create-a-production-plan](https://learn.moselle.io/planning-and-execution/replenishment/create-a-production-plan)
{% endcontent-ref %}

***

## Allocation Plan

**An allocation plan is** a distribution strategy that decides how to split available inventory across multiple warehouse locations or retail stores.

Use an allocation plan when you need to answer: *"How do I divide my stock across locations?"*

### When to Create an Allocation Plan

* [ ] You have inventory in a central warehouse that needs to be sent to multiple stores or locations
* [ ] You want demand-based distribution rather than splitting inventory manually
* [ ] You are managing a multi-location operation (e.g., retail chain, regional distribution)
* [ ] You need a plan for how to deploy inbound stock once it arrives

### What an Allocation Plan Does

* Uses your forecast to determine demand at each location
* Recommends how to divide available inventory across your warehouses or stores
* Helps prevent over-allocating to one location while another runs short

***

## Side-by-Side Comparison

|                       | Replenishment Plan                           | Allocation Plan                              |
| --------------------- | -------------------------------------------- | -------------------------------------------- |
| **Primary Question**  | What do I need to buy?                       | How do I distribute what I have?             |
| **Inventory Flow**    | Inbound — from supplier to warehouse         | Outbound — from warehouse to locations       |
| **Best For**          | Avoiding stockouts, creating purchase orders | Distributing stock across multiple locations |
| **Output**            | Purchase order recommendations               | Per-location distribution recommendations    |
| **Requires Forecast** | Yes                                          | Yes                                          |

***

## Which Plan Should I Create?

**Create a Replenishment Plan if:**

* Your goal is to restock inventory from a supplier
* You want Moselle to automatically identify what's at risk and recommend order quantities

**Create an Allocation Plan if:**

* You already have (or expect to receive) inventory and need to decide where it goes
* You operate multiple warehouses, stores, or fulfillment locations

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You can create both plan types for the same forecast. Many teams run a replenishment plan to manage purchasing and an allocation plan to manage distribution at the same time.
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## How to Create Either Plan

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#### Go to Production

In the Moselle sidebar, click **Production**.
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#### Click "Create Production Plan"

You will be prompted to choose a plan type: **Replenishment Plan** or **Allocation Plan**.
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{% step %}

#### Configure Your Plan

Fill in your forecast, warehouse, coverage period, and other settings — then click **Create**.

**Time Required:** 2–5 minutes
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{% content-ref url="../../planning-and-execution/replenishment/create-a-production-plan" %}
[create-a-production-plan](https://learn.moselle.io/planning-and-execution/replenishment/create-a-production-plan)
{% endcontent-ref %}