The standard OTB calculation for a specific period (usually monthly) is:
.
To build an effective OTB plan, retailers like those using Shopify often follow these steps:
Open to Buy Planning: A Retailer's Guide to Inventory Success
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
: 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
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Written by Trust Jamin Okpukoro
Trust Jamin Okpukoro is a Developer Advocate and Senior Technical Writer with a strong background in software engineering, community building, video creation, and public speaking. Over the past few years, he has consistently enhanced developer experiences across various tech products by creating impactful technical content and leading strategic initiatives. His work has helped increase product awareness, drive user engagement, boost sales, and position companies as thought leaders within their industries.
Open To Buy Planning <Hot – CHECKLIST>
The standard OTB calculation for a specific period (usually monthly) is:
.
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 The standard OTB calculation for a specific period
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 000 in sales
: 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