: Anticipated discounts or promotions that will reduce the retail value of your inventory.

Alternatively, some retailers include stock in the deduction to find the exact remaining budget:

: The retail value of stock on hand at the start of the period.

To build your spreadsheet, you need to understand the fundamental calculation. The standard retail formula for OTB (expressed in retail dollars) is:

: Forecasted revenue based on historical data and current trends.

In the fast-paced world of retail, inventory is your greatest asset—but it can also be your biggest liability if not managed correctly. An plan is a strategic roadmap that helps you determine exactly how much inventory to purchase during a specific period to meet sales targets without overstocking.