S&OP, Demand Planning & Forecasting worked example

Slow Moving Inventory Exposure at 32% write-down probability: a worked example

Suppose write-down probability falls to 32%. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimates the dollar value tied up in slow-moving stock that is likely to be written down or disposed of.

The inputs for this scenario

  • Slow-Moving SKUs On Hand: 180 SKUs (held at the documented default)
  • Average Inventory Value per SKU: 640 $/SKU (held at the documented default)
  • Write-Down Probability: 32 % (the input this scenario stresses; the baseline uses 45)
  • Disposal & Handling Charge: 2,500 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Total exposure = slow-moving SKUs x value per SKU x write-down probability % + disposal charge.
  • Total slow moving inventory exposure cost works out to 39,364 $ at these inputs, and this is the headline figure for the scenario.
  • Slow moving inventory exposure cost per unit works out to 219 $ / piece at these inputs.
  • Variable slow moving inventory exposure cost works out to 36,864 $ at these inputs.
  • Fixed slow moving inventory exposure adder works out to 2,500 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where write-down probability sits at 45% and the headline result is 54,340 $, this scenario comes in 27.56% below the baseline at 39,364 $.
  • It computes the total dollar exposure of your slow-moving inventory by applying a write-down probability to on-hand value and adding fixed disposal and handling costs. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • Total slow moving inventory exposure cost: 39,364 $ (headline result)
  • Slow moving inventory exposure cost per unit: 219 $ / piece
  • Variable slow moving inventory exposure cost: 36,864 $
  • Fixed slow moving inventory exposure adder: 2,500 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Slow Moving Inventory Exposure calculator, set write-down probability to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.