check Mark for close action
Try AccountingSuite™
for free
No credit card needed
Return to Glossary


Deadstock: Inventory that is no longer in demand or usable and must be disposed of.

Deadstock refers to inventory that is no longer in demand or usable and cannot be sold. Deadstock may result from a variety of factors, such as changes in consumer preferences, product obsolescence, overproduction, or a lack of demand. Deadstock takes up valuable storage space and can tie up capital, leading to increased carrying costs and potentially lower profitability.

Unlike obsolete inventory, which may still have some value and can be sold at a discount, deadstock cannot be sold and must be disposed of. The disposal of deadstock can be a significant challenge for businesses, as it often involves the disposal of physical materials or products.

There are several ways that businesses can dispose of deadstock:

  1. Recycling: Deadstock materials can be recycled or repurposed to minimize waste and potentially generate revenue from recycled materials.
  2. Donations: Deadstock materials can be donated to charities or other organizations that can use the products for their operations or distribute them to those in need.
  3. Landfills: Deadstock materials may need to be disposed of in landfills or other waste disposal sites, depending on the nature of the product and local regulations.

The disposal of deadstock can have significant environmental and social implications, and businesses should be careful to dispose of deadstock in a responsible and ethical manner.

Overall, managing deadstock is an important part of effective inventory management. By identifying deadstock early and taking steps to dispose of it appropriately, businesses can optimize their inventory management, reduce carrying costs, and minimize their environmental impact.