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
: The target stock level you want to have remaining to support the following month's sales. open to buy excel spreadsheet
: The retail value of stock on hand at the start of the period. At its core, OTB is an inventory budgeting system
: Forecasted revenue based on historical data and current trends. At its core
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: