Buy — Open To

Modern OTB systems allow for , but the financial control remains at the total level.

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. open to buy

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. Modern OTB systems allow for , but the

This comprehensive guide will explore the intricacies of Open to Buy, explaining what it is, how to calculate it, why it fails, and how to use it to maximize profitability. If you need Christmas inventory, your OTB in