A system and method includes a computer network system configured to provide output to a plurality of distribution centers for a retailer, an inputting system configured to allow ordering of a quantity of an item from a vendor having a minimum order quantity (MOQ) and vendor pack size for the item, an allocation system configured to allocate the order quantity based on an allocation policy including specific distribution centers and allocation percentages associated with the specific distribution centers, and an inventory allocation tool (IAT) configured to receive the allocation policy, order quantity, MOQ, and vendor pack size as inputs, optimizes distribution of the order quantity among the specific distribution centers so that MOQ and vendor pack size according to the allocation policy are respected, and outputs an executable purchase order over the computer network system for each specific distribution center.