OTB - Week

Open to Buy (OTB) Week Calculator Explained::

(a) What is this? This calculator shows how much money can be spend purchasing product each week.

(b) What does it tell me? The OTB - week calculatro, tells you the difference between how much inventory is needed and how much is available. This includes inventory on hand and any outstanding orders. Astute retailers will hold some OTB $ back in order to take advantage of deals, or to ensure fast selling items can be purchased to re-stock shelves.

(c) Why should I use it? Good inventory control is critical to ensuring you have an adequate level of stock on hand for the volume of sales being generated. Having too much stock, or indeed the wrong sort of stock, can slow the cash flow of a business and reduce profits with too many mark downs. On the other hand if you under buy and miss sales opportunities then you are not making your potential profit. Using an Open To Buy (OTB) Plan can help assist a retailer have the right products at the right time.

(d) Caution: This calculator is a method of determining what volume of stock you should be buying. It does not tell you what to buy, nor does it tell you about seasons, competitive issues or any other of the myriad of issues that can impact purchasing. Any decisions you make as a result of using this calculator are entirely at your own risk.

OTB - Week

Month	Sales @ Retail	Planned COGS	End Inventory	Beginning Inventory	Gross OTB	On Order	Net OTB
Retail GP (%)
	Planned
Week 1
Week 2
Week 3
Week 4
Week 5
Total

Helpfull Hint: If required, use our GST/VAT Calcalculator as all numbers are at cost. Gross OTB refers to the OTB including what you have already placed on order. Net OTB is how much you will need to spend in addition to the existing On Order amount. If you are within 5% of any of the plans this is considered an accurate result. Read the Caution note.