When is manual allocation most often used?

Manual allocation is most often used for extraordinary products, which are typically high-cost items. This is because these products usually require a more careful and strategic approach in terms of distribution and inventory management. High-cost items might be limited in availability and represent a significant investment for the company. Therefore, businesses often need to allocate them manually to ensure that stock is directed to the most appropriate buyer or purpose, aligning with specific business priorities or customer needs.

This approach allows for greater flexibility and consideration of individual circumstances surrounding each item, such as customer relationships, order specifications, or timing, which automated systems may not adequately account for. As such, manual allocation serves as a vital tool in effectively managing the distribution of high-value inventory in a way that respects the unique nature of these extraordinary products.