In the fast-paced world of retail, inventory is your greatest asset—but it can also be your biggest liability if not managed correctly. An plan is a strategic roadmap that helps you determine exactly how much inventory to purchase during a specific period to meet sales targets without overstocking.
OTB=Projected Sales+Planned Ending Inventory−Beginning Inventory−Already on OrderOTB equals Projected Sales plus Planned Ending Inventory minus Beginning Inventory minus Already on Order Key Components of an OTB Excel Template open to buy excel spreadsheet
: Forecasted revenue based on historical data and current trends. In the fast-paced world of retail, inventory is
Alternatively, some retailers include stock in the deduction to find the exact remaining budget: Alternatively, some retailers include stock in the deduction
While high-end retail management systems exist, an remains a solid, accessible tool for many small to medium-sized businesses to gain control over their cash flow and inventory levels. What is Open-to-Buy (OTB)?
: The retail value of stock on hand at the start of the period.