Maximizing Retail Profit with an Open-to-Buy Excel Spreadsheet
: The target stock level you want to have remaining to support the following month's sales. open to buy excel spreadsheet
: Forecasted revenue based on historical data and current trends. Essential data rows include: At its core, OTB
OTB=Projected Sales+Planned Ending Inventory−Beginning Inventory−Already on OrderOTB equals Projected Sales plus Planned Ending Inventory minus Beginning Inventory minus Already on Order Key Components of an OTB Excel Template open to buy excel spreadsheet
Open-to-Buy=(Planned Sales+Planned Markdowns+Planned Ending Inventory)−Planned Beginning InventoryOpen-to-Buy equals open paren Planned Sales plus Planned Markdowns plus Planned Ending Inventory close paren minus Planned Beginning Inventory
A functional OTB spreadsheet should include columns for each month or week of the planning period (typically 6 to 12 months). Essential data rows include:
At its core, OTB is an inventory budgeting system. It calculates the dollar amount or unit count of merchandise a retailer has available to purchase after accounting for current stock on hand and outstanding orders. The Core OTB Formula