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Dead stock register format4/5/2024 An inventory control manager needs to determine the causes of their dead stock and work on inventory reduction. Dead Stock Inventory Managementĭead stock inventory control consists of selling what product you can and finding ways to minimize the expenses accrued by dead stock. Even worse, you may have caused a bullwhip effect for your suppliers, so they too have too many potatoes on hand. These potatoes are now a drain on your warehouse and may even go bad before you can offload them. ![]() This remaining balance is now considered dead stock. As such, you can't feasibly sell the remaining 150 any time soon. Due to a new health food trend, revised forecasting shows that sweet potatoes have stolen most demand for potatoes. Unfortunately, demand for those wholesale products unexpectedly dropped and you can only sell 50 sacks in those two months. Your inventory forecasting shows that you can expect to sell them within two months. Let's say you're a food wholesaler and you ordered 200 sacks of potatoes for resale. To help clear things up, here's a brief example of dead stock: It is likely the result of overbuying, inaccurate demand planning, or poor sales strategies. It was never intended to sit for as long as it has. Example of Dead Stockĭead stock is not the same as inventory with a long life cycle. This makes dead stock a drain on warehouse resources.ĭead stock continues to depreciate in value and may eventually expire or become obsolete and have to be written off as a loss. They were not ordered with the intention of storing them for a long time, as in the case of safety stock. These goods are not expected to be sold in the near future. Dead Stock Definitionĭead stock is any unsold inventory that sits in storage for a long period of time. The dead stock meaning can also be used when referring to dead restaurant inventory. ![]() Unfortunately, it can be found in the facilities of many businesses and takes up valuable warehousing space. ![]() It is a drain on resources and actively prevents a business's ability to increase its profits. Dead stock is a form of surplus inventory that is unlikely to be sold in the near future.
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