Concepts
Dead Stock
Dead Stock: Inventory that has not sold or been used for an extended period.
What causes dead stock
Dead stock can come from over-ordering, poor forecasting, discontinued products, bad location data, seasonality, or purchasing without visibility into what is already available.
Why dead stock is expensive
Dead stock ties up cash, takes storage space, increases count time, and can hide more important inventory problems.
How to reduce dead stock
Review slow movers, improve reorder points, discount or bundle stale products, return what you can, and avoid buying more until existing stock is used.