Retail Math

Open-to-Buy, Inventory Turn & GMROI Modeler

Open-to-buy says what you may still commit. GMROI says whether what you already own deserved the money.

Buying Plan This period
Inventory Performance Annual
%

Open-to-Buy

—

Still available to commit this period

Inventory Performance

Inventory Turn
— ×/yr
Weeks of Supply
— weeks
GMROI
— ×
Implied Annual Sales
—
Annual Gross Margin
—

A negative open-to-buy means the plan is already over-committed — the period is spent before any further orders are placed. GMROI below 1 means the inventory is not returning its own cost in margin over the year.

Open-to-Buy, Inventory Turn & GMROI Modeler — free, with the formula and a worked example, at Textile School.