Detect: age and recent movement
Adjust: season, launch, shelf life
Assess: demand, margin, cash
Route: transfer, promote, return, dispose
Review: recovery and recurrence
Age is a signal, not the disposition rule
A winter item can be quiet for 90 summer days while a short-life food item may become urgent after 30.
Thresholds need product, lifecycle, shelf-life, and replenishment context.
Reconstruct lot and quantity semantics first
One SKU may contain several receipts, transfers, returns, and count adjustments. Choose true lot age, FIFO inference, or another declared method.
Separate blocked, in-transit, damaged, and display units from sellable stock.
Combine past movement with forward commitments
Review recent rate, sell-through, cover, and price alongside confirmed campaigns, season windows, orders, and discontinuation plans.
A forecast is one scenario and does not remove uncertainty around launches or market shifts.
Route every segment to an owned action
Queues can cover monitoring, store transfer, bundle promotion, supplier return, markdown, or disposal review.
Record quantity, cost, owner, deadline, approval, and expected recovery so the analysis does not end as an ignored list.
Accept through lot reconciliation and outcomes
Sample receipts, movements, lots, age, and sellable status, then ensure transfers and returns do not duplicate quantity.
BI0 can be evaluated for inventory operations; lot semantics, forecast, workflow, and writeback scope require POC verification.
Define exactly what inventory age measures
Age may mean oldest remaining receipt, FIFO-inferred quantity age, last receipt, or days since sale. Prefer real lots where available and label inference. A small new receipt must not make old stock appear new.
Reconcile opening, receipts, transfers, returns, sales, disposal, adjustments, and closing. Separate blocked, damaged, in-transit, allocated, and display inventory from sellable quantity.
Segment risk across age, movement, life, and value
Combine age, recent rate, cover, sell-through, forecast, remaining shelf life, margin, cost, and lead time. Add season window, launch age, or discontinuation state. Thresholds belong to category and lifecycle.
Create stable action states with entry and exit conditions. Hard safety or shelf-life constraints override a blended score.
Attach owned actions to location and demand
Transfer may beat markdown when one location has excess and another shortage. Promotion, supplier return, and disposal have distinct economics and approvals. Each recommendation needs quantity, site, expected recovery, owner, and deadline.
Simulate inventory conservation so a transfer reduces the source and prevents duplicate purchasing. Write action outcomes back rather than producing an unowned list.
Measure recovery and prevent recurrence
Track completion, units sold or returned, net cash recovery, discount loss, disposal, days reduction, and recurrence. Compare against a credible no-action baseline.
Trace repeated excess to forecast bias, MOQ, lifecycle delay, or master-data defects. Feeding causes into replenishment is more valuable than repeatedly reporting the same SKU.
Verify BI0 scope and approximation
Test multiple receipts, partial sale, return, transfer, count adjustment, expiry, season, launch, and retirement, reconciling age buckets to sellable quantity.
BI0 may support inventory operations, but lot semantics, FIFO inference, forecast, workflow, and ERP writeback require POC verification. Approximate age must not be represented as exact lot history.
Public references
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