Buying & open-to-buy

What is open-to-buy (OTB)?

The amount of new stock you can receive this period and still hit the plan.

Why it matters: It's the budget that keeps buying in line with the financial plan.

How it's worked out: OTB = planned sales + markdowns + planned closing stock − opening stock − on order. (500 + 50 + 300 − 400 − 150 = $300k)

Related terms

Stock arriving into the business in a period, also called intake.

The top-down plan for sales, margin, markdowns and inventory across a season, by department and channel.

Plan with confidence. One set of numbers, every team, every week.