LastTimeBuyOption

Last Time Buy Option, commonly abbreviated as LTB, is a policy used by manufacturers and distributors to allow customers to purchase the final remaining quantities of a product or component that has reached or will reach end of life. The option provides a defined window during which purchases are accepted, followed by a cutoff date after which no further orders are fulfilled. LTB is a form of obsolescence and lifecycle management intended to balance customer needs with production planning.

The primary purpose of an LTB is to provide continuity for customers who rely on spare parts or legacy components, reducing the risk of supply disruption as a product is phased out. It also helps the supplier manage inventory and production scheduling by offering a controlled exit path from the product line.

How an LTB is typically implemented varies by company but generally includes a formal notice or announcement outlining eligibility, the LTB window (start and end dates or stock exhaustion), minimum order quantities, pricing, production lead times, and any warranty or post-discontinuation support constraints. Orders placed within the window are commonly non-cancellable and fulfilled from remaining stock, with fulfillment ending when inventory is exhausted.

Scope can include hardware components, spare parts, and packaged materials; it is less commonly applied to new software licenses, though some vendors may offer related arrangements for legacy licenses. The LTB interacts with broader end-of-life and obsolescence management processes, informing customers’ procurement planning and replacement strategies.