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
: Forecasted revenue based on historical data and current trends.
: The retail value of stock on hand at the start of the period. 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.
: Inventory that has been purchased but not yet received. 3 Reasons to Use an OTB Spreadsheet At its core, OTB is an inventory budgeting system
: The target stock level you want to have remaining to support the following month's sales.
Maximizing Retail Profit with an Open-to-Buy Excel Spreadsheet : The retail value of stock on hand
A functional OTB spreadsheet should include columns for each month or week of the planning period (typically 6 to 12 months). Essential data rows include: