RedHub AI
Quick Kit · The Math
How the math works
Cash stuck in slow stock
Inventory isn't an asset until it sells. Any stock beyond the months you actually need is cash sitting frozen on a shelf — here's how the kit sizes exactly how much.
The inputs (one overstock SKU)
Units on hand
200
in the warehouse
Unit cost
$25
what you paid
Selling
20 / mo
current pace
Target
2 mo
stock you want
(200 units − 2 mo × 20 /mo) × $25 cost
= 200 − 40 units you'd sell in 2 months = 160 excess units × $25 each
Cash trapped · one SKU
$4,000trapped
Ten months of stock; you needed two
At a 25%/yr carrying cost, that's another $1,000 a year just to hold it.
One overstock SKU has $4,000 of cash frozen — 160 units past what you'll sell before it matters. The kit flags every dead and slow SKU, sizes the excess, and totals the carrying cost you're paying to store it.
Estimates from your inputs; carrying cost commonly runs 20–30%/yr. A liquidation-sizing guide, not a substitute for your accountant.