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. open to buy formula

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 The desired stock level you want to have