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    WORKING CAPITAL AI

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    Inventory Optimization

    Turn Stock into Cash

    Reduce cash trapped in inventory without stockouts. Improve turns, rationalize SKUs, and free cash that's sitting on shelves.

    "Every SKU on your shelf is a cash allocation decision. Make sure each one is earning its keep."
    — Working Capital AI

    Inventory is cash sitting on shelves. Every unit of inventory represents cash you've spent that you can't use for anything else until that unit sells. For many businesses, inventory is the largest trap of working capital - and the hardest to optimize.

    The goal isn't minimum inventory - it's right-sized inventory. Enough to meet demand without stockouts, but not so much that cash is trapped in slow-moving products. This requires understanding your turns by SKU, identifying what's not selling, and making hard decisions about product mix.

    In this topic, you'll learn to analyze inventory turns, identify slow-moving and obsolete inventory, implement right-sizing strategies, and free cash that's currently trapped on shelves.

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    1

    Inventory turns vary by product - don't apply one standard to all SKUs

    2

    The 80/20 rule applies: 20% of SKUs usually drive 80% of inventory value

    3

    Slow-moving inventory doesn't get faster - liquidate or write it off

    4

    Safety stock is insurance - but insurance has a cost (trapped cash)

    5

    Forecast accuracy improves inventory efficiency - invest in demand planning

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