The target stock level for the end of the period. Why Retailers Use It
While specific variations exist, the fundamental logic behind OTB is: open to buy definition
is a financial budget and retail planning process that calculates the amount of merchandise a retailer can purchase within a specific timeframe. It acts as a guardrail to ensure businesses remain within their financial goals while maintaining enough stock to meet customer demand. Key Components of OTB The target stock level for the end of the period