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Do you think that non moving inventory is a good and enough indicator for disposal of it?

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Question added by Abd alwahab Alqaramseh , Material Section Head , CEGCO
Date Posted: 2014/02/04
Ameya Pai Angle
by Ameya Pai Angle , Summer Intern (Purchase and Warehouse Management) , Indoco Remedies Ltd

No. Its not a good indicator. there are few other parameters also.

for ex. there is a engine model, the company has stopped its production but there are few engines in the market which are in working condition and may need some spare parts at any time. Hence you cannot dispose the spare parts unless all the engines are decommisioned.

luis mercurio
by luis mercurio , Storekeeper/MEP , ISZL Consortium

It is not good in the simple sense that the company's capital is tied up into it thereby delaying its utilization to other productive ventures.

Abd alwahab Alqaramseh
by Abd alwahab Alqaramseh , Material Section Head , CEGCO

No it's enough and it's not a good indicator for this action .

Some time after we check for reason for non moving items , we found the main reason for that is a wrong or not clear description or stored under wrong grou