Allocation planning in supply chain management is the process of determining exactly where customer demand should be placed to maximize profits. It means forecasting customer demand, assigning customer orders to fulfill that demand, and ensuring timely delivery of resources to meet those demands. Allocation planning takes into account factors such as inventory levels, customer preferences, transportation capabilities, current market conditions, lead times, and other business constraints. By wisely allocating resources across the supply chain, companies can dramatically increase their sales while also reducing costs and improving customer satisfaction.