Stock that is no longer usable or sellable for various reasons, including seasonality, expiration, changing consumer preferences, or technological advancements, is referred to as obsolete inventory. It costs money, takes up storage space, and might need pricey markdowns or disposal. Proactive techniques like demand forecasting, lifecycle planning, and recurring inventory reviews are necessary for managing obsolete inventory. By increasing forecast accuracy, putting just-in-time procedures into place, and using data analytics for demand sensing, effective inventory optimization aims to reduce obsolescence.
