GlossaryEN1 min readUpdated: Jun 23, 2026
Active Inventory
In inventory management, warehouse planners and buyers draw a clear line between active inventory and reserve positions such as safety stock, obsolete goods, or slow-moving SKUs.
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Source: https://www.supplychaindictionary.com/definitions/active-inventory
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Logistics concept
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1 min
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Definition & Explanation
In inventory management, warehouse planners and buyers draw a clear line between active inventory and reserve positions such as safety stock, obsolete goods, or slow-moving SKUs. Active inventory refers to the items turned over regularly – daily or weekly – to meet ongoing operational demand directly. Its size determines how much floor space, picking capacity, and tied-up capital a warehouse requires for day-to-day operations. Excess active inventory drives up storage and financing costs; too little puts service levels at risk and leads to stockouts. In stock optimisation, active inventory serves as the primary control variable for setting minimum quantities, reorder points, and ABC classifications.
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