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Retail & Allocation lesson

Open-to-buy

How much is left to spend

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About 5–10 minutes · no sign-up needed

Formulas

Planned sales + Planned markdowns + Planned closing stock − Opening stock − On order

Key points

What you needPlanned sales + Planned markdowns + Planned closing stock.
What you haveOpening stock + Stock already on order.
Open-to-buyNeed − Have: the budget left to spend. Negative means overbought.

Open-to-buy stops buyers from ordering more than the plan can sell.

Practice

Try each one in your head first, then open the answer.

1. What is next month's open-to-buy for Audio?
$40,000 + $2,000 + $70,000 − $80,000 − $12,000 = $20,000
2. In G2, work out Audio's open-to-buy: planned sales + planned markdowns + planned closing stock − opening stock − on order.
=B2+C2+D2-E2-F2
3. What is next month's open-to-buy for Power banks?
$20,000 + $4,000 + $45,000 − $60,000 − $5,000 = $4,000
4. Next month, Chargers have an open-to-buy of −$5,000. What does that mean?
More stock is already committed than the plan allows

Learn it by doing. This lesson is a short hands-on level on Bampaa: see it work, then build and write it yourself, with instant feedback.

Try this lesson free →
About 5–10 minutes · no sign-up needed