Analysis & Classification · 04 · Risk

Dead stock detector with aging buckets

"Dead stock" isn't one thing — it's a gradient. Some inventory has been sitting for 45 days (still sellable); some for a year (cost-of-storage now exceeds the value). This tool buckets your SKUs by days since last sale, attaches a dollar figure to each bucket, and ranks what to act on first.

5 aging buckets Capital tied up Action priority
Aging bucket$ tied up <30 days$120,000 30-60d$48,000 60-90d$22,000 90-180d$9,500 >180d$3,200 Schematic: capital tied up by aging bucket. Bigger bar = bigger write-off risk.

What this tool does

Most "dead stock" tools just tell you whether a SKU is dead (e.g., no sales in 90 days). That's useful for triage but doesn't help you write the board memo. This tool:

Why 5 buckets instead of "dead or alive"

An SKU with no sale in 45 days is very different from one with no sale in 14 months. The first might just be seasonal; the second has cost-of-storage > gross profit if you ever do sell it. Default rules of thumb:

For perishable inventory, shift every bucket down by half. For fashion/seasonal, double the 90+ bucket threshold.

SKUs with last-sale date and quantity on hand
SKUQty on handUnit cost ($)Days since last sale

How to use the output

The bar chart-style summary tells you where the dollars are. Most healthy businesses have a tall bar at 0-30 days and a tiny tail at 180+. If your 90+ bucket is large, the issue isn't your last quarter's forecasting — it's accumulated slow-moving inventory that should have been acted on earlier.

The action priority list ranks every SKU by $ tied up × days idle, so a high-value SKU with 200 days idle ranks above a low-value one with 60 days idle. Use that as your to-do list.

What this tool doesn't do

FAQ

Q: Should I include safety stock in this analysis?

A: Yes. Slow-moving safety stock is still capital tied up; treat it the same. If your safety stock is genuinely required (see Safety Stock), exclude that quantity from the analysis.

Q: What about items I just received?

A: Items with zero days since last sale haven't proven themselves. They go in the 0-30 bucket and your eyes should track them, but they aren't "dead" yet.

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