How to read this result
Use this before assuming inventory can simply sit and wait.
Slow inventory creates storage, capital, liquidation, and removal risk even when the product has unit margin.
Numbers to watch
- • Aged units
- • Storage exposure
- • Capital at risk
- • Liquidation loss
What to do next
- 1.Reduce order size or improve sell-through if aged exposure is high.
- 2.Model discounts and liquidation before stock ages.
- 3.Check return cost before final pricing.