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Try open-to-buy planning

Having the right amount of the right stuff at the right time is the goal of good inventory management — and it’s not all guesswork
By Bob Negen
Published: September 15, 2015
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The goal of good inventory management is to maintain an appropriate level of inventory for the amount of sales that you are generating. You want to have adequate assortments when sales are slow so that you don’t miss possible sales, but not so much that you drain your cash flow. When sales pick up, you want to increase your inventory levels to support the increased sales, but be careful not to overbuy.
In other words, you want:
• the right amount
• of the right stuff
• at the right time.
This is where open-to-buy planning comes into play. It tells you how much inventory should be on hand at the beginning of any given month and how much new merchandise should be received during the month to maintain your optimum inventory levels.
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