Glossary Discription

Disposition is the strategic process of determining and executing the final handling, allocation, or removal of goods, materials, or assets within a supply chain or logistics operation. This decision-based process involves evaluating excess, obsolete, damaged, returned, or end-of-life inventory and selecting the most appropriate course of action—such as liquidation, resale, recycling, donation, reallocation, or disposal. Disposition is a critical component of inventory management that directly impacts warehouse efficiency, cost control, regulatory compliance, and overall supply chain optimization. The process typically involves logistics professionals, inventory managers, or automated warehouse management systems that assess product condition, market value, storage costs, and business objectives to make informed decisions about asset fate.

Common Disposition Methods

• Resale and Liquidation
• Recycling and Material Recovery
• Donation and Charitable Distribution
• Reallocation and Internal Transfer
• Disposal and Destruction