While specific variations exist, the fundamental logic behind OTB is:
Helps identify slow-moving inventory, allowing for faster stock rotation. open to buy definition
What is Open-to-Buy (OTB)? Definition, Meaning & Examples - Board While specific variations exist
Ensures key products are available when customers want them. open to buy definition
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.
For a deeper dive into retail planning, resources like the Shopify Retail Blog and Board's Glossary offer detailed guides and formulas for different business sizes. AI responses may include mistakes. Learn more