Open-to-buy (OTB) planning is a for retailers to determine how much inventory to buy while maintaining healthy cash flow . It calculates the difference between your desired inventory levels and what you already have on hand or on order. The Core Formula
To build an effective OTB plan, retailers like those using Shopify often follow these steps: open to buy planning
Open to Buy Planning: A Retailer's Guide to Inventory Success Open-to-buy (OTB) planning is a for retailers to
The standard OTB calculation for a specific period (usually monthly) is: 000 in sales
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: If you plan $30,000 in sales, expect $700 in markdowns, and want $50,000 in EOM stock with $60,000 already at the start, your OTB budget is $20,700 . Step-by-Step Implementation