What is OTB allocation in SAP IS-R - SAP for Retail?

SAP Term: OTB allocation

• Component: IS-R

• Component Name: SAP for Retail

• Description: Retail A strategy for controlling risks whereby only part of the total budget for a delivery period is released. The budget can be allocated according to order months, or part can be released before the start of the business phase and the rest retained for use during the business phase.

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• Key Concepts: 
  OTB allocation is a feature of the IS-R SAP for Retail system that allows retailers to plan and manage their inventory. It enables retailers to set an optimal inventory level for each product, based on sales forecasts and other factors. This helps retailers to ensure that they have the right amount of stock on hand at all times. 
  
  How to use it: 
  OTB allocation can be used to set an optimal inventory level for each product. This is done by setting a target inventory level for each product, based on sales forecasts and other factors. The system then calculates the optimal inventory level for each product, taking into account the current stock levels and any upcoming orders. 
  
  Tips & Tricks: 
  When setting the target inventory levels, it is important to consider the seasonality of sales and any upcoming promotions or events that may affect demand. It is also important to consider the lead time for ordering new stock, as this will affect how much stock needs to be kept on hand. 
  
  Related Information: 
  OTB allocation is part of the IS-R SAP for Retail system, which also includes features such as demand forecasting, pricing optimization, and supply chain management. These features can be used together to help retailers manage their inventory more effectively.