End-of-Period (EOP) Inventory Formula
How apparel planners calculate the closing inventory position and why EOP accuracy sets the starting point for next period's plan.
What EOP Inventory measures
EOP is the inventory on hand at the close of a period. It is derived from the period's BOP, receipts, sales, and markdowns — and becomes the next period's BOP.
EOP = BOP + Receipts − Sales − MarkdownsWorked apparel example
A department with $1.1M BOP, $1.05M in receipts at retail, $850K in sales, and $100K in markdowns.
EOP = $1.1M + $1.05M − $850K − $100K = $1.2M
$1.2M opens June. That figure — combined with the June sales plan — drives June's OTB and SSR.
EOP lands at $1,200,000. This becomes next period's BOP — every planning decision for next month flows from this number.
Failure modes we see
EOP used from plan, not actual. The plan's EOP is $1.2M; actuals close at $1.35M (sell-through missed). Next month's BOP in the plan file stays at $1.2M. Every downstream number is wrong by $150K — and nobody catches it until hindsight.
How RetailNorthstar handles EOP
EOP is a derived live number, not a plan row. It updates continuously as sales book and receipts land. Next month's BOP is always the current EOP read, not a frozen plan value.
Related formulas
- BOP Inventory — the opening input
- Receipt Plan — the flow that reshapes EOP
- Open-to-Buy — EOP target is an OTB input
See EOP land live against plan — with drift flagged before it becomes next month's BOP problem.
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