What is the process of determining the right inventory based on factors like price, style, brands, and color?

The process of determining the right inventory based on factors like price, style, brands, and color is known as assortment planning. This approach focuses on curating a selection of products that meet the target market's preferences and needs, ensuring that the inventory aligns with consumer demand while balancing various factors such as aesthetics and pricing.

Assortment planning involves analyzing sales data, customer preferences, and current trends to create a product mix that appeals to the intended audience. This careful selection helps retailers optimize their offerings, enhance customer satisfaction, and ultimately drive sales.

In contrast, inventory management primarily deals with overseeing stock levels, ensuring that there is enough product on hand to meet demand while minimizing excess. Stock allocation refers to distributing inventory across various locations or stores, which is more about logistical operations than the strategic curation of products. Merchandising strategy encompasses broader planning and promotional tactics used to market products but does not specifically address the careful selection of inventory styles and characteristics in the same focused manner as assortment planning does.