Difference between Slow Moving Stock and Dead Stock

What is Slow Moving Stock?
Slow moving items are the materials which are consumed less or not at all over a long period of time. The slow moving stock is the difference of total usage value and the total valuated stock of table S031. Total usage will be totally planned and unplanned consumption. Finding out the slow moving stocks and no moving stocks will be extremely useful in reducing the inventory carrying costs because you can determine which stocks are not required and, if necessary you can remove them.
 
Transaction code MC46 is used for Slow moving items based on the no of days.
 
 
What is Dead Stock?
Deadstock is the stock in the warehouse that has been not used for a long period of time. It is calculated by multiplying the dead stock and the current price. If total usage is zero they are termed to be no moving rather dead materials. Dead stock is the obsolete stock which you cannot use further.
 
Transaction code MC50 is used for the Deadstock movement.
 
1. In analyzing stock movement between period 1 and 5, stock never drops below 30. 30 is your dead stock. It’s the part of stock that was never touched.
 
2. If our setting for safety stock is 10, we can safely assume we’re overbuying. This may be due to lot size that forces the procurement planner to procure more than strictly necessary.
 
3. If our safety stock is 50, we know that we used some of our safety stock. This is not necessarily a bad thing since we may have run into vendor delivery problems.
 
4. If our safety stock happens to be 30 and stock never dips below this level for a whole year, then our safety stock may be set too high. The value of safety stock is to cover unexpected rise in demand or problems with supply. If this “never” happens there is no need for safety stock.
 
5. Ask our self the question, how many days’ supply does this dead stock quantity represent. This will give us a good idea on how to judge the dead stock.
 
6.The report is very useful but does not offer the full picture of your stock position. Always use this report in combination with other reports.

Enable GingerCannot connect to Ginger Check your internet connection
or reload the browserDisable in this text fieldEditEdit in GingerEdit in Ginger×Enable GingerCannot connect to Ginger Check your internet connection
or reload the browserDisable in this text fieldEditEdit in GingerEdit in Ginger×