(1) A designated number of tons to be manufactured for a region and/or customer. (2) A reservation of paper/board from inventory to fill a customer order.
A breakdown of the purchase price usually required when a business is sold. For example, the allocation might contain a breakdown of the inventories, fixtures and equipment, leasehold improvements, goodwill, and any other purchased assets. Generally, value is placed on each component of the allocation and the buyer and seller agree on this breakdown. The IRS requires that such an allocation be a part of the buyer's and seller's tax return when a sale takes place; Form 8594, the “Asset Acquisition Statement”, must be filed with the buyer's and seller's tax return for the year in which an “applicable asset acquisition” takes place.
Allocations in inventory management are the actual demand created by sales orders or work orders against a specific item. A firm allocation is an allocation against specific units within a facility, such as an allocation against a specific location, lot, or serial number. Firm allocations are also sometimes referred to as specific allocations, hard allocations, hard commitments, holds, frozen allocations, or reserved inventory. Standard allocations simply show that there is demand while firm allocations reserve or hold the inventory for the specific order designated.