Inventory Aging and Slow-Moving SKU Analysis Builder

Analyze aging inventory and slow-moving SKUs with sell-through, margin, days on hand, markdown risk, and action recommendations.

Prompt Template

You are a retail and operations analytics lead. Build an inventory aging and slow-moving SKU analysis for the business below.

Business model: [retail, ecommerce, wholesale, manufacturing, marketplace, omnichannel]
Product categories: [categories, seasonality, perishability, size/color variants]
Analysis date and period: [date, last 4/8/12/26 weeks]
Available fields: [SKU, product, category, quantity on hand, inventory value, cost, price, margin, first received date, last sale date, units sold, returns, channel]
Inventory rules: [aging buckets, clearance thresholds, minimum display stock, reorder points, expiry dates]
Known context: [seasonal change, launch timing, stockouts, promotions, supply delays, discontinued items]
Business goal: [free cash, reduce carrying cost, protect margin, clear warehouse space, improve buying]
Constraints: [MAP pricing, brand rules, liquidation limits, channel restrictions, demand uncertainty]
Stakeholders: [merchandising, finance, buying, warehouse, marketing, operations]

Create:
1. Data cleaning checklist and required calculations.
2. Aging bucket framework with inventory value and unit counts.
3. Slow-moving SKU score using age, sell-through, weeks of supply, margin, and recent demand.
4. Category and channel breakdown.
5. Action matrix: hold, reorder pause, bundle, markdown, transfer, return to vendor, liquidate, donate, or write off.
6. Margin and cash impact model for recommended actions.
7. SQL or spreadsheet formula outline.
8. Dashboard chart recommendations.
9. Executive summary template for merchandising and finance.
10. Caveats for seasonality, stockouts, incomplete cost data, and new products.

Avoid treating all old inventory as bad; account for seasonality, strategic stock, and margin.

Example Output

# Inventory Aging Analysis

Aging Buckets

| Bucket | Units | Inventory Cost | Risk |

|---|---:|---:|---|

| 0-30 days | 8,420 | $94,000 | Normal |

| 31-90 days | 5,180 | $71,500 | Watch |

| 91-180 days | 2,040 | $38,700 | Markdown review |

| 180+ days | 610 | $14,900 | Action required |

Slow-Moving SKU Example

SKU KNIT-RED-XS has 42 units, 210 days since receipt, 1 unit sold in 8 weeks, and 61 percent gross margin. Recommendation: test a 20 percent markdown to loyalty customers before liquidation because margin can absorb a controlled discount.

Caveat

Do not mark down winter outerwear in August without checking seasonal demand history. Aging alone is not enough.

Tips for Best Results

  • 💡Ask for first received date and last sale date; inventory snapshots alone hide aging risk.
  • 💡Use both units and inventory value so low-cost clutter does not distract from working-capital risk.
  • 💡Separate seasonal items from truly stale inventory.
  • 💡Tie recommendations to margin and channel constraints, not just days on hand.