Open To — Buy

is a financial planning strategy used by retailers to calculate how much inventory they should purchase over a specific period. It acts as a buying budget that balances current stock against sales goals and markdowns to ensure a store has enough product to meet demand without overspending or overstocking. Core Purpose

In a personal finance context, "open to buy" can also refer to the on a consumer account, such as a Sam's Club credit card. It represents the amount of credit remaining that the cardholder can use for new purchases. [Video] Open to Buy Explained + Template Walkthrough open to buy

The primary goal of OTB planning is to maintain the right inventory balance. is a financial planning strategy used by retailers

: Tracks the number of items rather than their dollar value, which is helpful for replenishment and allocation across multiple locations. Alternative Meaning: Credit Cards It represents the amount of credit remaining that

OTB=(Planned Sales+Planned Markdowns+Planned End-of-Month Inventory)−Planned Beginning-of-Month Inventorycap O cap T cap B equals open paren Planned Sales plus Planned Markdowns plus Planned End-of-Month Inventory close paren minus Planned Beginning-of-Month Inventory : The total revenue expected for the period.

: Ensures popular items remain available for customers to prevent lost sales.