Creating an Open-to-Buy plan can help you carefully manage merchandise across the business for the year. By using an open-to-buy plan, your able to find areas within your retail organization where you can save money to invest in other areas of the business. Using the Open-to-Buy Formula, calculate the dollar amount a 15% cost-savings would allow you to invest in another area of the business if you currently have $155,000 devoted to inventory.

6 Month OTB Plan	June	July	August	September	October	November
Beginning of the Month Inventory	$155,000	$150,000	$152,000	$157,000	$157,000	$165,000
Sales	$47,000	$48,000	$50,000	$50,000	$52,000	$48,000
Markdowns	$1,000	$750	$750	$1,000	$1,500	$1,000
Open - to - buy (at retail)	$43,000	$50,750	$55,750	$51,000	$61,500	$37,000
Open - to - buy (at cost)	$17,200	$20,300	$22,300	$20,400	$24,600	$14,800
End of Month Inventory	$150,000	$152,000	$157,000	$157,000	$165,000	$153,000