Buy Excel Spreadsheet - Open To

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

: The target stock level you want to have remaining to support the following month's sales. open to buy excel spreadsheet

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

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

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

Alternatively, some retailers include stock in the deduction to find the exact remaining budget: