Skip to main content

Dead Stock

Understand how Optiply identifies Dead Stock (inventory not expected to sell within two years) by projecting sales based on a 30-day average, and how to filter products to prioritize inventory reduction.

Ricardo Guerreiro avatar
Written by Ricardo Guerreiro
Updated over a week ago

💀 Identifying and Managing Dead Stock

Dead Stock refers to inventory that is not selling and is not expected to sell in the foreseeable future. These products tie up valuable capital and warehouse space, negatively impacting your cash flow and storage efficiency.

Optiply's Dead Stock Definition

Optiply uses a clear, forecast-based definition to classify dead stock:

  • Dead Stock is any inventory that Optiply's forecasting engine does not expect to be sold in the coming two years (24 months).

How Dead Stock is Calculated

Optiply determines the specific amount of dead stock per product by projecting your short-term sales demand over the full two-year period.

The calculation uses the following inputs:

  1. Expected Sales (30 Days): Optiply first calculates the average expected sales for the product over the next 30 days.

  2. Two-Year Projection: This 30-day forecast is then used to create a reliable 24-month sales projection.

  3. Final Calculation: The Dead Stock amount is calculated by subtracting this total projected 24-month demand from your available stock:

Dead Stock = Current Free Stock - Expected Sales Projected over 24 Months

  • Current Free Stock: This refers to the quantity of product in your inventory that is available and not reserved for existing customer orders.

This calculation shows you exactly how much inventory is considered a long-term liability.

Locating Dead Stock Products

You can easily filter your entire product database to view only the items classified as Dead Stock:

  1. Navigate to the Products Page: From the main menu, go to the Products overview.

  2. Access Filters: Locate the Filters or Column View options above the product table.

  3. Apply the Dead Stock Filter: Find and select the Dead Stock filter (or a column showing the Dead Stock quantity).

  4. Confirm Selection: Click the Apply button at the bottom of the filter menu to update the product list.

This view provides immediate insight into which products are underperforming and require immediate action (e.g., promotional campaigns or markdowns).

❓ Frequently Asked Questions (FAQs)

Is the term "Dead Stock" the same as "Obsolete Stock"?

While often used interchangeably, Dead Stock typically refers to inventory that is very slow-moving (not expected to sell in 24 months). Obsolete Stock usually refers to inventory that can no longer be sold at all due to regulatory changes, expiration, or being replaced by a newer model.

Why does Optiply set the threshold at 2 years?

Two years is a common threshold in inventory planning to distinguish between slow-moving items (which still require occasional purchase advice) and items that represent a long-term liability. Any stock that won't sell in 24 months is generally considered a write-down risk.

Why does Optiply use a 30-day forecast to calculate 2-year Dead Stock?

Optiply uses the 30-day expected sales average as a stable, recent indicator of demand. By extrapolating this reliable short-term average over 24 months, the system creates a consistent, long-term sales projection for dead stock analysis.

If a product is classified as Dead Stock, will Optiply ever advise me to purchase it?

No. Once a product is classified as having Dead Stock, Optiply's algorithms will cease all purchase advice for that product until the available free stock drops below the long-term expected sales forecast.

How can I get rid of Dead Stock?

Optiply identifies the problem, but the solution requires action outside the platform. Common strategies include deep discounting, bundling the item with a fast-moving product, or liquidating the inventory to free up capital and space.

Did this answer your question?