: Prevents tying up cash in slow-moving items, which can hurt cash flow.
OTB=(Planned Sales+Planned Markdowns+Planned End-of-Month Inventory)−Planned Beginning-of-Month Inventorycap O cap T cap B equals open paren Planned Sales plus Planned Markdowns plus Planned End-of-Month Inventory close paren minus Planned Beginning-of-Month Inventory : The total revenue expected for the period. open to buy
Retailers typically use a basic formula to determine their available budget (often calculated in retail dollars): : Prevents tying up cash in slow-moving items,