E&O 101

What is E&O, why it happens, how to measure it, and how it affects both operations and financial performance.


Definition of Excess vs. Obsolete inventory

Common causes (MOQs, forecast errors, engineering changes, seasonal shifts, etc.)

How E&O impacts cashflow

How E&O is measured (aging buckets, last-demand date, turns, reserve %)

Strategies to reduce E&O

Preventing E&O through process, not just cleanup

E&O 101