Think of your inventory as “employees” you pay to sit on the shelf. They do not make you any money until they are working at the jobsite.
Your customers will want some of these “employees” more than others. If you had a bench of 100 employees and most days you had a call for the same 75 people. This could mean the other 25 consistently sit on the bench.
Would you keep the 25 employees? Probably not. Does this mean that they would be bad employees? Probably not. It just means your customers don’t need that particular employee’s talent.
Yet this is how our inventory often gets treated. 25% of what we own sits on the shelf most of the times. Our customers seldom want to rent it. It cost us something to buy it. It cost us something to store it, and it is making us zero money sitting on the shelf. It does not maximize our company’s profit potential.
Perhaps we should keep only that inventory that can get out and make us the most money.