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Open to Buy Planning: A Retailer's Guide to Inventory Success open to buy planning
To build an effective OTB plan, retailers like those using Shopify often follow these steps: 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 expect $700 in markdowns
The standard OTB calculation for a specific period (usually monthly) is:
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