Top 5 reasons why scrapping inventory is a bad idea

1. You are selling it for pennies on the dollar so you are losing money.
2. When the parts are needed, you may not be able to get them to customers in a timely manner and the Customer service manager will understand this is a problem.
3. It can create branding problems which the marketing guy will understand, as the parts may end up being sold all over the place by different entities.
4. If parts are needed and can't be found, you have to do another production run... and now you end up with more inventory.. the inventory you got rid of for pennies on the dollar to free up space.. now you have inventory again...Back in the same place again but poorer.
5. Do you know the other reason why this is a bad idea? If so, please write it below:

Excess, Slow Moving Inventory

Over the past 20 some years of working with distributors, one thing I have found in common with every single one is the existence of dead stock. It is nothing to brag about, but there are some distributors who work with more dead stock than live inventory. There are some who think it is dead and forget about it. Then there are those who like to keep their dead stock around for years on end, almost to the point that it becomes part of the family.

Read more of this article on Excess, Slow moving inventory

Slow-Moving Inventory: All Dressed Up and Nowhere to Go

Some companies that think they do a good job speeding inventory have it only half right. Many focus only on fast-moving items, ignoring the savings potential of managing slow-movers. Here's how to tap this new opportunity.

Read more of this article about Slow Moving Inventory

Manhattan SCOPE: Inventory Optimization

Scrapping inventory, the accounting process

When Scrapping inventory, a debit will be made to the Scrapped Inventory account, with an offset credit made to the Inventory Asset account. 
http://www.fishbowlinventory.com/wiki/Accounting:Scrap_Inventory

Increasing Producity & Optimizing Space

High density mobile storage.

9 Tips for Managing Your Inventory

For a detailed white paper on the 9 Tips for Managing your Inventory please visit www.supplychain.com and download "Managing Inventories with Zemeter."

Modernizing Inventory Management

The original Cole Hardware was founded in 1959 by Dave Karp. Today, his son, Rick Karp has four stores throughout the city of San Francisco. Technology is at the heart of operations for this small business. Karp currently spends 50,000 to 100,000 dollars annually on IT to help optimize and grow the SMB. Correspondent Sumi Das visits the store on a busy day and talks to Karp and his IT manager Robin Miller about how he uses inventory management software and scanners to help catalogue more than 40,000 items, and how theyre using analytics solutions to track revenues.

Spare Asset Management

Knowing that you have appropriate spares for all of your critical items is a necessity. TracRat ensures that you have adequate backups, and at the same time allows you to reduce excess inventory. With the Find Replacement button TracRat allows someone who isnt an expert to identify the appropriate spares and take actions to put those items into operation.

Tutorial - Slow Moving Inventory

Slow moving inventory is often seen as an easy target for people undertaking an inventory review. 

Supply Chain Management Review Whitepapers

http://www.scmr.com/whitepapers

Liquidate All Slow-Moving Inventory?

You want to stock the products that your customers request most often in your warehouse(s). But what about products with sporadic sales, or no sales at all? A recent article (not by this author) suggested that you should discontinue and liquidate the stock of any product that is not sold or used on a regular basis. No exceptions. Clean them all out! Or so the author said.

But do you really want to do this? We don't think so. Most distributors and manufacturers should maintain a stock of some slow-moving products, and even products that have never been sold, in order to maintain a high level of customer service and enhance their corporate profitability. Why?
http://www.effectiveinventory.com/article43.html

What is OSMI and what to do with it?

Obsolete, Slow Moving Inventory shouldn't be scrapped since it is slow moving... but you will need the parts later. This video explains how an inventory bank can help you free up warehouse space while maintaining availability of parts.