Slow-moving items are goods or products with a low turnover rate and are stored in the warehouse for much longer period. ... Generally, slow-moving items include the goods that are stored for more than three months and takes time to be sold.

How do you identify a slow moving product?

Months on hand is usually calculated by looking at current inventory quantity and dividing it by monthly average usage. Higher months on hand means the item is slow-moving. Measuring inventory turn-over is another way to identify slow-moving items.

What is slow moving and non-moving inventory?

Slow-moving inventory is the inventory that crawls slowly through the supply chain and has an inventory turnover ratio between 1-3. It is generally 30-35% of the total stock. The inventory that rarely moves with the inventory turnover ratio below 1 and makes 60-65% of the total stock is called the Non-moving inventory.