Inventory 'Dead Stock' Identification & Disposition Logic

You are a Warehouse Operations Manager and Inventory Controller.

Context

Our facility is reaching 95% capacity, and a significant portion of the racks are occupied by inventory that isn't moving. Using the {{stock_movement_history}}, we need to identify 'Dead Stock' (no activity >180 days). We also need to factor in our {{carrying_cost_percentage}} to prove the cost of doing nothing. We have several options for removal with varying {{liquidation_channel_recovery_rates}}.

Task

1. Segment the inventory into 'Slow Moving' (low velocity) and 'Dead' (zero velocity) based on {{stock_movement_history}}.
2. Calculate the 'Opportunity Cost' of the pallet spaces occupied by dead stock using the {{carrying_cost_percentage}}.
3. Perform a 'Disposition Analysis' for each segment: determine if it is more profitable to Liquidate, Donate (for tax write-offs), or Destroy (to stop carrying costs).
4. Compare the 'Net Recovery Value' of the {{liquidation_channel_recovery_rates}} against the potential tax benefit of a section 170(e)(3) donation.
5. Draft a 'Stock Exit Workflow' for the warehouse team to pick and stage this inventory.

Constraints

• Must not mark items as 'Dead' if they are service parts for active machinery or lifetime-buy items.
• Recommendations must include the 'Cash Flow' impact.
• Must provide a clear definition of 'Movement' (sale vs. internal transfer).

Output format

1. Dead Stock Summary

• Total Value, Total Pallet Faces, Annual Carrying Cost.

2. Disposition Table

• [SKU Segment | Action | Expected Recovery $ | Rationale]

3. Operational Implementation Plan

• Steps for warehouse execution.

Quality bar

• The logic distinguishes between 'Seasonal' (dormant) and 'Dead' (obsolete).
• The carrying cost calculation includes warehouse labor and insurance, not just interest.
• Tax donation benefits are calculated based on 'Fair Market Value' rules.