Dead Stock
Detection and liquidation of excess inventory across all warehouses
How it works
Full inventory scan
Every SKU across all 8 warehouses is analyzed: current stock quantity, cost price, last sale date, average daily velocity, and seasonal pattern. Nothing is excluded — even items with recent arrivals.
Multi-criteria classification
A product is flagged as dead stock only when it passes all 4 filters: no sales in >90 days, not in a known seasonal off-period, stock level above the 75th percentile, and physical inventory confirms presence.
Frozen capital calculation
Each flagged item gets a dollar ($) amount of frozen capital: quantity × cost price. Items are ranked by capital impact — so a $1.47M enzyme supplement position surfaces before a $200 bandage.
Action plan generation
Every dead stock item receives a recommended action: markdown (with optimal discount %), transfer to a higher-velocity store, bundle with a fast-mover, or liquidate. Priority is based on capital freed per action.
Under the Hood
No sales + not off-season + above percentile threshold + positive physical stock. All four must pass simultaneously to eliminate false positives.
current_balance × avg_purchase_price per SKU per warehouse. Real cost basis, not shelf price — gives you the actual cash value locked up.
Compares stock velocity across all locations. A product dead at Location A may be a fast-mover at Location B — transfer before markdown.
Real-World Example
Real example
Retail chain: Diagnostic test strips had 847 days of supply at 1-2 packs sold per month. The system flagged them as dead stock and recommended a cascade markdown: −15% for the first month, −30% if no response.