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Inventory & Stores

Dead Stock

Materials or products that have not been used or sold for a long time and are unlikely to move in the future.

Dead Stock refers to inventory items that have had no movement for 6-12 months and are unlikely to be used again.

Causes

  • Over-purchasing
  • Product discontinuation
  • Customer order cancellations
  • Obsolescence due to technology changes

Action

Identify dead stock quarterly, attempt liquidation, return to supplier, or scrap to free up warehouse space and capital.

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