This setup all looks fine.
Please note that when setting up Deficiency Allocation Entry, you can set the values to however you would like the stores to be ranked. You can use Sales and/or Sell Thru criteria by assigned a percentage to both. The summed total for both must = 100%. You can also choose how many weeks of history to consider for the ranking (but 4 weeks is a reasonable number).
The Lead Times (from WH to Store) will be used by the Sales Based formulas.
The Delivery Date Limit is used by all formulas including Sales Based on Stock Model method also for adjusting the warehouse and/or store inventories (based on PO’s with a Delivery date to be received within the next 3 Days)