Value the money tied up in unsold inventory.
Dead stock is valued at what the money would have been spent on, and its annual carrying cost shows the ongoing drain of keeping it unsold. Obsolete stock quietly consumes working capital every month, so its total cost justifies aggressive discounting to clear it.
Dead Stock Cost
Dead stock value = unsold units x unit cost; carrying = value x carrying%
Dead stock value = unsold units x unit cost; carrying = value x carrying% Dead stock is valued at what the money would have been spent on, and its annual carrying cost shows the ongoing drain of keeping it unsold.
Obsolete stock quietly consumes working capital every month, so its total cost justifies aggressive discounting to clear it.
This calculator takes 3 inputs: Unsold units, Cost per unit, Annual carrying cost. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.