Allocation explained
07-29-2016, 06:12 PM
#3
AudiWorld Super User
So allocation is a pretty in-depth calculation with a lot of factors, but I'll do my best to explain it. An allocation is the only way an order is guaranteed to be built.
Allocation is the number of cars a dealer is allowed to order for a specific month. The number changes every month and varies by car line/ model. There are no restrictions on trim levels.
The number of cars allocated also depends on how many cars the factory is going to build for a certain production month (can't order more than what is going to be built). Allocation does not account for just number of cars sold, but also a dealer's days supply. The goal of allocation is to make the days supply of a certain model equal across all dealerships.
So where I work, we sell a lot of Q7s (typically our #1 or 2 selling model) but we also have a huge Q7 inventory. Because of this, our allocation may be smaller than another dealer's simply because our large inventory raises our days supply.
Hopefully this helps.
Allocation is the number of cars a dealer is allowed to order for a specific month. The number changes every month and varies by car line/ model. There are no restrictions on trim levels.
The number of cars allocated also depends on how many cars the factory is going to build for a certain production month (can't order more than what is going to be built). Allocation does not account for just number of cars sold, but also a dealer's days supply. The goal of allocation is to make the days supply of a certain model equal across all dealerships.
So where I work, we sell a lot of Q7s (typically our #1 or 2 selling model) but we also have a huge Q7 inventory. Because of this, our allocation may be smaller than another dealer's simply because our large inventory raises our days supply.
Hopefully this helps.
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