Retailers may track OTB in different ways depending on their specific needs:
: Focuses on the actual cash amount the retailer will spend with vendors, providing strict financial guardrails. open to buy
: Allows retailers to spend money on new products or replenishment based on actual performance data. The Standard OTB Formula Retailers may track OTB in different ways depending
The primary goal of OTB planning is to maintain the right inventory balance. open to buy
Retailers typically use a basic formula to determine their available budget (often calculated in retail dollars):