Dead Stock Analysis
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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

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.

KPI Definition

Business Value

Movement Direction

Sample Formula

Number of Dead Stock Units / Total Inventory

Should Aim For
1
2
3
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