Which of the following is a key benefit of using an OTB plan?

An Open-to-Buy (OTB) plan is a financial framework that helps retailers manage their inventory effectively by planning purchases based on projected sales. One of the key benefits of utilizing an OTB plan is that it helps avoid stockouts or running out of individual products. This is critical because when a popular item is out of stock, a business can lose sales and negatively impact customer satisfaction. By analyzing sales data and forecasting demand, an OTB plan ensures that the right amount of inventory is available, thus minimizing the chances of running out of stock. This approach allows retailers to maintain optimal inventory levels, align their purchasing decisions with customer demand, and ultimately enhance the shopping experience for customers while boosting overall sales performance.