Open To Buy Formula (2027)

The revenue you expect to generate during the period.

If a boutique clothing store is planning for October with these projections: $20,000 Planned End-of-Month Inventory: $15,000 Planned Markdowns: $1,000 Beginning Inventory: $18,000 On-Order Inventory: $4,000 The calculation would be: OTB . Key Implementation Details Open to Buy (OTB) Guide - Retail Dogma open to buy formula

The desired stock level you want to have at the end of the month or season. The revenue you expect to generate during the period

The value of orders already placed but not yet received. Example Calculation 000 Planned End-of-Month Inventory: $15

The value of the stock you have on hand at the start of the period.