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Inventory Age

Inventory age measures how long individual units of inventory have been in stock. It reflects the elapsed time since goods were received into the warehouse or fulfillment center.

Why It Matters

  • Helps identify slow-moving inventory that ties up working capital.
  • Useful for monitoring aging risk, storage cost accumulation, and potential write-downs.
  • Reveals mismatches between replenishment frequency and actual sales velocity.
  • Particularly important in FBA environments where long-term storage fees apply.

Connection to Capital

Older inventory locks capital for longer periods, reducing capital efficiency and increasing financial risk.

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