In an open to buy plan, sales estimates and cost of goods estimates are based on which business management tool?

In an open to buy plan, sales estimates and cost of goods estimates are primarily based on historical data. This method allows businesses to analyze past sales performance, seasonality, and inventory turnover rates to project future sales and inventory needs accurately. By examining trends and patterns found in historical data, golf operations can make informed decisions about how much inventory to purchase and when to invest in new stock. This predictive approach helps ensure that there is adequate inventory to meet customer demand without overstocking, which can lead to surplus and increased holding costs.

While current inventory levels, market research, and vendor sales reports can provide valuable insights, they do not serve as the foundation for creating an open to buy plan. Current inventory levels might affect how much more inventory one might need, market research can guide future purchasing trends, and vendor sales reports provide specific insights into vendor performance. However, historical data is essential because it gives a comprehensive overview that encompasses various influencing factors over time, leading to more effective and strategic purchasing decisions.