Which of the following is an indicator of stock risk aging?

• A. High expiry proportion
• B. Low expiry proportion
• C. Fast turnover rate
• D. Consistent forecast accuracy

Answer: (A)

Stock aging risk comes from items remaining unsold as their shelf life dwindles. The best indicator here is a high proportion of stock that is near expiry. When a large share of inventory has little time left before expiration, the chances of waste or heavy discounting increases, tying up capital and reducing the ability to stock fresh, in-demand products. In contrast, a low expiry proportion means most items have longer remaining shelf life, which lowers aging risk. A fast turnover rate suggests items are sold quickly, further reducing the risk of aging stock. And consistently accurate forecasts reflect good planning and do not by themselves indicate aging stock.