Open To Buy ((full)) Jun 2026

At its simplest, the OTB calculation tells you your remaining "spending power" after accounting for what you already have and what you expect to sell.

The value of stock on hand at the start of the period.

Calculated before a season begins. This is based on historical data, trend forecasts, and financial goals. It is a predictive tool used to set budgets for buyers. open to buy

This is the stock level you have at the start of the period. In a rolling plan, this is simply the "Planned Ending Inventory" from the previous month.

(approx. $7.99) appreciate the variety of shades and how well it cuts. Southworth 100% Cotton Business Paper At its simplest, the OTB calculation tells you

A common mistake is using a 30-day OTB cycle for a vendor with a 90-day lead time. You must forecast OTB as far out as your longest lead time. If you need Christmas inventory, your OTB in September must account for orders that arrive in November.

You must calculate OTB across total company inventory , then allocate by channel using demand sensing. This is based on historical data, trend forecasts,

OTB is usually calculated in retail dollars (the price you sell it for) rather than cost dollars (the price you buy it for), though it can be converted to cost dollars when writing purchase orders. It represents the difference between the inventory you need to achieve your sales plans and the inventory you actually have on hand or on order.

But OTB is more than just a number; it is a strategic philosophy. When executed correctly, an OTB plan ensures you have the right product, at the right place, at the right time, while maximizing your ROI.