If a buyer lowers planned reductions by $7,000 for the month,this will:
A) reduce planned reductions for the following month by one half that amount; $3,500.
B) reduce BOM inventory by $7,000.
C) lower this month's OTB by $7,000.
D) raise planned purchases by $7,000 for this month.
E) raise this month's OTB by $7,000.

Question

Quizplus · Accepted Answer

Planned reductions are subtracted from planned purchases to determine the Open-to-Buy (OTB) for the month. By lowering planned reductions by $7,000, the OTB for the month will also be lowered by $7,000. None of the other options are directly related to planned reductions.

If a Buyer Lowers Planned Reductions by $7,000 for the Month,this