Difference between dead stock and excess inventory
Dead stock and excess inventory are often confused concepts. After all, they both refer to an excess of stock.
The fundamental difference is that excess inventory, in general, still has the opportunity to be used, as it comprehends merchandise that still has some potential demand and can be sold. Dead stock, on the other hand, are products of low relevance for which there is no longer a market.
In fact, over time, unresolved excess inventory can end up as dead stock. Excess inventory is considered dead stock if it remains in the warehouse for a year or more.