Dead Stock Analysis
Category: Analytical
Measures the amount of inventory that has not moved for a long period and is unlikely to be sold.
What it Measures ?
Tracks inventory that isn't moving or selling.
Relevant StakeHolders
Inventory Manager, Finance Analyst
Why it Matters ?
Reduces costs tied to slow-moving inventory.
In-depth Use Case / Real-world Example
A company manufacturing furniture calculates Dead Stock Analysis by tracking items that haven’t sold for several months or years. For example, if a product has not been sold in over 12 months, it is considered dead stock. Identifying and removing dead stock helps free up space and reduce inventory holding costs.