This course empowers you to plan and calculate Buying Budgets to acquire inventory that enables a retailer to have sufficient stock/inventory to achieve Sales and not overburden the cash flow at a retail organization . This is a crucial element of Inventory management and supply chain management and financial planning as well.
Question of the hour: How much inventory should a retailer buy and for when to achieve sales target without burdening the business?
We cover two methods to calculate the buying budget or OTB from very simple to advanced
Method 1: OTB Tool that can be used in its simplistic form to build a topline buying budget to achieve a certain sales plan
Method 2: SSI Tool to build advanced buying budgets that spans over a period of time rather than a point in time and factors in certain elements of inventory management that are crucial to getting a proper flow of stock.
As we approach these two methods, we introduce and explain you the various concepts of retail inventory management like merchandising, safety stock, inventory cover, markdown, terminal stock, etc. and their relationships
We will share excel templates of the OTB tool and SSI tool that you can use by yourself to calculate open to buy in your retail organization
