Open-to-Buy (OTB)

Open-to-buy (OTB) is the amount of inventory, in retail dollars, a buyer can still receive in a period without exceeding the plan. It is calculated as planned end-of-month stock + planned sales + planned markdowns − beginning stock − merchandise on order.

OTB is the control that keeps buying aligned to the financial plan. A positive OTB means there is room to chase; a negative OTB means you are overbought and committed beyond plan.

It is recalculated as sales, receipts, and markdowns land, so the figure is only as good as the data feeding it — which is why spreadsheet OTB drifts out of date quickly.