Perishable inventory

What is perishable inventory?

Perishable inventory are products or services that possess the possibility of spoilage or loss.

Food is a perishable commodity.

A hotel room and an airline seat are also perishable products. An empty airline seat on a flight cannot be stored for another flight. Once the airplane takes off, the revenue from an empty seat is lost forever.

The same analogy applies to a hotel room that remains vacant for the evening.

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