Definition
Sitting inventory
The value or quantity of product on hand that is not yet needed to cover expected usage before the next delivery, cash parked on the shelf above working stock.
Worked example
Par is 8 bottles; on-hand is 18 after an opportunistic case buy. Expected use before next delivery is 6. Roughly 4 bottles are intentional buffer; ~6 bottles are sitting inventory tying up cash until sell-through catches up. At $22 cost each, that is about $132 of working capital parked for no near-term need.
When operators use this
Review sitting inventory when the order guide keeps replenishing a bottle that already sits above par. Pair it with dead stock (no sales) and par level (the target). Package stores and wine shops feel this at catalog scale; a well feels it as extra backups that never leave the ice. liquor stores covers the retail shape.
Common mistakes
Calling every bottle above par a mistake ignores event stock, allocations, and a patio season you already planned. Label intentional holds. The failure is reordering a SKU that is already heavy, not owning a case you meant to buy.
How ExactPour handles it
ExactPour contrasts on-hand to par and velocity so overstock and stockout risk show up together. Demand forecasts and dead-stock style views help trim sitting inventory without starving the rail, and reorder suggestions stop replenishing SKUs that already sit far above par.
Qualification
Some buffer is deliberate; the measure only flags potential over-ordering when compared against usage over a representative period. Event stock and allocation holds should be labeled so they are not treated as mistakes.