FAQs about Open-to-Buy

Frequently asked questions about OTB planning.

Written by Sara Jaffer
Updated over a week ago

Does OTB consider lead times?

Lead times are not considered automatically in OTB, since they can vary by Variant/SKU.

To consider the lead time, you can set stock cover = 0 for the months where it's not possible to receive stock, along with the period where you can receive stock.

For example, take a scenario where stock cannot be received until June due to the lead times:

To account for the lead time, you can input zeroes for the forward cover in May and June:

This zeroes out the OTB recommendation for April and May, and pushes it into June:

Note that a figure for OTB will be recommended regardless of whether it would otherwise force stock cover into a negative value:

Should planned revenue be changed for the months where it is not possible to receive stock?

If you are expecting stock will run out before the end of the corresponding month, we would suggest setting the planned revenue to equal the value of your opening stock.

In this example, we can't receive anything until June, so I zeroed out the forward cover of May, June and July:

Now we can see that I'll enter July with only 0.455 months of cover. From here, I change the planned revenue to match with the opening stock of July to match what I can actually sell in the period:

This automatically updates the cover for the prior months, and keeps the OTB recommendation for July.

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