but these reasons should be compared to the cost storing these items.
Housing excess or obsolete inventory is a poor utilization of your space and can be a costly mistake.
The first step to removing excess inventory is to calculate the economic amount of inventory you should have on-hand.
Then, compare this amount to the actual inventory on-hand.
The difference is the amount of potential excess inventory that can be removed.
By properly managing your inventory,
you can remove excess items and reallocate that space for fast-moving or high-volume products.