Glossary

Open-to-buy

The amount you can still spend on new stock for a period without overbuying.

Open-to-buy = planned sales + planned ending stock − starting stock − stock already on order

If you plan $10,000 of sales this month and want to end with $8,000 of stock, you start with $9,000, and $4,000 is already on order, your open-to-buy is $5,000. Use the same basis throughout, cost or retail value, not a mix.

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