Open To Buy [NEW]

: The value of the stock you already have on hand at the start of the period. Types of OTB

: Focuses on the actual cash amount the retailer will spend with vendors, providing strict financial guardrails. open to buy

: Allows retailers to spend money on new products or replenishment based on actual performance data. The Standard OTB Formula : The value of the stock you already

: Ensures popular items remain available for customers to prevent lost sales. open to buy

OTB=(Planned Sales+Planned Markdowns+Planned End-of-Month Inventory)−Planned Beginning-of-Month Inventorycap O cap T cap B equals open paren Planned Sales plus Planned Markdowns plus Planned End-of-Month Inventory close paren minus Planned Beginning-of-Month Inventory : The total revenue expected for the period.