Open To Buy ❲Linux❳
: Tracks the number of items rather than their dollar value, which is helpful for replenishment and allocation across multiple locations. Alternative Meaning: Credit Cards
: The value of the stock you already have on hand at the start of the period. Types of OTB open to buy
: Focuses on the actual cash amount the retailer will spend with vendors, providing strict financial guardrails. : Tracks the number of items rather than
: Prevents tying up cash in slow-moving items, which can hurt cash flow. : Prevents tying up cash in slow-moving items,
OTB=(Planned Sales+Planned Markdowns+Planned End-of-Month Inventory)−Planned Beginning-of-Month Inventorycap O cap T cap B equals open paren Planned Sales plus Planned Markdowns plus Planned End-of-Month Inventory close paren minus Planned Beginning-of-Month Inventory : The total revenue expected for the period.
In a personal finance context, "open to buy" can also refer to the on a consumer account, such as a Sam's Club credit card. It represents the amount of credit remaining that the cardholder can use for new purchases. [Video] Open to Buy Explained + Template Walkthrough
: The target value of stock you want to have left over to start the next period.