Open-to-buy is the difference between planned purchases and purchase commitments already made by a buyer for that month.

Question

Quizplus · Accepted Answer

Open-to-buy (OTB) is the amount of money a buyer has left in their budget after taking into account their planned purchases and purchase commitments already made for a specific period, usually a month. It represents the amount of funds that a buyer has available to purchase additional inventory during the period. Therefore, the statement is true.

Open-To-Buy Is the Difference Between Planned Purchases and Purchase Commitments