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.
At its core, OTB is an inventory budgeting system. It calculates the dollar amount or unit count of merchandise a retailer has available to purchase after accounting for current stock on hand and outstanding orders. The Core OTB Formula open to buy excel spreadsheet
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)? In the fast-paced world of retail, inventory is
To build your spreadsheet, you need to understand the fundamental calculation. The standard retail formula for OTB (expressed in retail dollars) is: It calculates the dollar amount or unit count
: The target stock level you want to have remaining to support the following month's sales.
: Anticipated discounts or promotions that will reduce the retail value of your inventory.
: Inventory that has been purchased but not yet received. 3 Reasons to Use an OTB Spreadsheet