# Reduce excess and obsolete inventory with a disposal plan

Identifies slow-moving and obsolete stock, sorts it by recovery option, and builds a plan to free cash and prevent recurrence.

- Topic: Projects & Operations
- Framework: RTF
- Level: Standard
- Tags: Finance, Write, Plan, Fill-in Template
- Source: https://www.thinkwithprompt.com/prompts/reduce-excess-and-obsolete-inventory-with-a-disposal-plan

## Prompt

```text
Help me reduce excess and obsolete (E&O) inventory.

**Inventory data:** [SKU, ON-HAND QTY, UNIT COST, LAST SALE OR USAGE DATE, 12-MONTH USAGE, FORECAST]
**Our definitions:** [e.g. "excess = more than 12 months of supply", "obsolete = no usage in 18 months or end-of-life"]
**Current reserve or write-down:** [AMOUNT, IF KNOWN]
**Options open to us:** [return to supplier, sell to customers at discount, liquidators, rework into other products, donate, scrap]
**Constraints:** [SHELF LIFE, BRAND PROTECTION, REGULATORY DISPOSAL RULES, STORAGE COSTS]

Steps:
1. Classify each SKU: active, slow-moving, excess, obsolete, using my definitions.
2. Quantify value by class and the annual carrying cost of holding it.
3. For each excess or obsolete SKU, recommend the best recovery option and an expected recovery range, labeled as an estimate.
4. Identify why the E&O built up (over-forecasting, MOQ buys, end-of-life not flagged, engineering changes) using patterns in the data.
5. Suggest controls to prevent recurrence: lifecycle flags, MOQ approval rules, periodic review.

Do not invent resale values or recovery rates; mark them [ESTIMATE] or [ADD QUOTE]. Accounting treatment of write-downs should be confirmed with finance.

Return:
1. A summary table by class: SKUs | Units | Value | Carrying cost per year.
2. An action list: SKU | Value | Recommended option | Expected recovery | Owner | Date.
3. The top 3 root causes and the controls to fix them.
4. A short note to finance explaining the plan and reserve impact.
```

## What to fill in

- AMOUNT, IF KNOWN
- ESTIMATE
- ADD QUOTE

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