While specific variations exist, the fundamental logic behind OTB is:
What is Open-to-Buy (OTB)? Definition, Meaning & Examples - Board open to buy definition
Prevents over-committing capital by buying too much stock. While specific variations exist
Retailers use data rather than "gut instinct" to manage their inventory levels. An OTB plan typically factors in: The projected revenue for the period. Current Inventory: The physical stock already on hand. Projected Markdowns: Discounts expected during the period. open to buy definition
The target stock level for the end of the period. Why Retailers Use It