## Slow-Moving and Non-Moving Materials
Items not regularly consumed in production tie up working capital without generating value. Identifying and disposing of them promptly prevents further deterioration.
### How to Detect
1. Periodic reports (monthly or quarterly) — show purchase, consumption, and balance in both quantity and value for each item.
2. Inventory Turnover Period — number of days a material sits in stores before use; a very high holding period flags slow-moving status.
3. Inventory Turnover Ratio — issues as a percentage of average stock; a very low ratio signals over-investment.
4. Well-designed information system — automated alerts when an item has had no issues beyond a defined threshold period.
### Steps to Reduce Such Stocks
1. Establish clear disposal procedures and guidelines before the material further deteriorates or becomes obsolete.
2. Diversify production to incorporate the slow-moving material as an input.
3. Use the material as a substitute for another material currently being purchased.