Inventory Aging Buckets

July 11, 2013

We defined a new excess inventory calculation as anything not bought, sold or setup as new in the last 12 months for a customer recently. At his request we took this a step further and defined excess “aging buckets” The buckets consisted of assigning a flag to each item/ location that had not had any sales or purchase activity with in specific periods of time.
If the item had activity between 0 and 9 months it was flagged Current.
If the item hadn’t had activity in 10 – 12 months it was flagged At Risk.
If no activity since 13 – 18 months then Excess 1.
If no actvity since 12 – 23 months then Excess 2.
Anything older was flagged as Excess 3.

The customer then took this information and generated his own pie charts in Execukeys. He could at a glance see how much inventory was in each aging bucket and how much excess he had over all.

Let us know if you are interested in definining your excess inventory calculation or creating inventory excess aging buckets.