Open To Buy Definition -

The target stock level for the end of the period. Why Retailers Use It

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. The target stock level for the end of the period