Materials

Dead Stock

Inventory that has not sold for an extended period and may be obsolete.

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Updated 2025-10-01

Definition

Dead stock refers to unsold or outdated inventory that occupies warehouse space without generating revenue.

Overview

Overview

Managing dead stock is essential to optimize inventory turnover and reduce holding costs.

Causes

  • Seasonal products not sold in time
  • Changes in customer preferences
  • Overstocking

Solutions

  • Discount sales or liquidation
  • Returns to suppliers
  • Donation or recycling

Example

A retailer identifies unsold winter coats from the previous year as dead stock and discounts them for clearance.

Tags

#Dead Stock#Inventory#Obsolete Stock#Warehouse Management

Related Terms

Inventory Aging
Stockout
Perpetual Inventory