The difference between planned purchases and purchase commitments made by a buyer for a given time period is ________.

Question

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Planned purchases are the estimated amount of merchandise that a buyer plans to buy for a specific period, while purchase commitments are the orders that the buyer has made to suppliers for that same period. The difference between the two is called open-to-buy, which represents the amount of money that the buyer has available to spend on additional merchandise.

The Difference Between Planned Purchases and Purchase Commitments Made by a Buyer