In our last post we looked at determining economic order quantities and reorder points to ensure you have the optimal amount of inventory in stock at any given any time. Economic order quantity lets you minimize inventory costs while matching customer demand, while calculating the reorder points for your products means you’ll always know when it’s time to place a new order, thanks to inventory management software.
Even then, you may find yourself stuck with dead stock. Dead stock are products that haven’t sold a single unit in a year, and footing the inventory costs for these have-beens/never-beens can drain your finances. Moreover, there’s also the opportunity cost of choosing to use your warehouse space to store dead stock instead of your top sellers.
Now, we’d like to introduce some tips on cutting your business free from the burden of dead stock to reduce the financial strain on your business: