Identify slow-moving and dead inventory across your SKUs. Get actionable recommendations to reduce holding costs and free up capital.
| SKU Name | Current Stock | Units Sold (90 Days) | Unit Cost ($) | Monthly Holding Cost ($) | |
|---|---|---|---|---|---|
Dead stock is inventory that has had zero sales over a significant period. It ties up cash and incurs ongoing holding costs.
Sales velocity measures how quickly a product sells (units per day). Zero velocity means the product hasn't sold at all.
Monthly holding cost includes storage, insurance, and depreciation. A typical estimate is 2-3% of the item's value per month.
Enter stock quantities and sales data for your SKUs above. The calculator will analyze sales velocity, holding costs, and recommend actions for each product. Results update automatically.
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Dead stock refers to inventory that has not sold in a significant period (typically 90+ days) and has zero or near-zero sales velocity. It ties up capital, takes up warehouse space, and incurs ongoing holding costs without generating revenue.
Sales velocity is calculated by dividing the total units sold in a given period by the number of days in that period. For example, if you sold 90 units in the last 90 days, your daily sales velocity is 1 unit per day.
Inventory holding costs typically range from 20% to 30% of the item's value per year, or roughly $0.50 to $2.00 per unit per month for small goods. This includes warehousing, insurance, depreciation, and opportunity cost of capital.
Consider liquidation when an item has zero sales velocity for 90+ days and the ongoing holding costs exceed the potential recovery value. Common liquidation channels include clearance sales, bundle deals, donation for tax write-offs, or selling to liquidation companies.
Prevent dead stock by using demand forecasting tools, setting reorder points based on actual sales data, running regular inventory audits, implementing first-in-first-out practices, and monitoring sales velocity trends to catch slowdowns early.