USA Inventory reserve for product with limited shelf life

[BobG]

I am curious how others treat product with limited shelf life. Biggest challenge is limited visibility into future sales (forecast) beyond 1 or 2 quarters. How is valuation risk addressed with limited knowledge of future sales volumes? Small company, good growth, but can be sporatic up and down. System data limited, SKU level forecast not maintained with ERP.

 

[DrStrangeLove]

It depends on what their product is, but just-in-time manufacturing would fit this bill. If their product isn't agricultural, or if disposal of spoiled inventory isn't expensive or dangerous, they could keep some inventory of popular items in stock, and manufacture the rest to order.

More useful advice requires further and better particulars as to the nature of the product.