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How do you determine stocks that are not moving and what do you do with it?

One of our principals is on a consignment basis. We're drafting the contract now and we want to put a clause where every end of the quarter, we will ask to return/replace what we call "black stocks" or stocks that are super slow moving. The problem is we cant agree on the definition of "slow-moving" in terms of numbers. Like should it be less than 100 pcs sold for the last 30 days? Maybe 80% of the black stocks will be returned, something like that.

Would like to hear some inputs. And what do you do with them? Do you return them and ask for replacement of faster moving skus?

Thanks!

submitted by /u/thelostpinay
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