What is Active Stock?

Active stock means the inventory that a business uses, refills, and moves around regularly. This stock includes items with a constant turnover rate, are consistently in demand, and require frequent restocking. Active stock differs from passive or inactive stock, including items that move slowly or are rarely used.

For example, in retail, active stock might include everyday essentials like groceries, clothing basics, or electronics that customers frequently purchase. On the other hand, seasonal items or specialty products with lower demand might be considered inactive stock.