What is inventory aging and why is it tracked in FCs?

• A. The number of times stock has been moved; helps with tracing.
• B. The expiration date tracking; helps with use-by dates.
• C. The length of time stock has been on hand; tracking aging helps with planning, obsolescence risk, and rotation.
• D. The value decline of stock; helps with depreciation.

Answer: (C)

Inventory aging is the measure of how long stock has been on hand in the warehouse. Tracking aging helps with planning and replenishment because older items may indicate slow movement and require attention. It also helps manage obsolescence risk and ensures proper rotation so that older stock is used or sold first, reducing waste and unused space. This focus on time on hand is different from simply counting moves, expiration tracking, or depreciation, though aging data is often used alongside those controls to keep inventory fresh and well managed.