I stumbled on an interesting method of goblin clothing disposal. Have a binned stockpile that only accepts base-quality clothing, and is also a refuse pile that accepts no individual types of refuse. Dwarves will scoop up the light clothing items in the bins, and take them to the stockpile where they will rot away with no further hauling. There's a brief window in which the clothing can be claimed for wearing, still allowing you to clothe your dwarves before your clothier or leatherworker is regularly turning out -clothes- or better. (Those -clothes- get quantum stockpiled near the trade depot, allowing for easy searching and transport of x-clothes-x.)
That is similar to what I do.
I have a large stockpile which is my source stockpile. This is where all goods aside from food and refuse are hauled to. Yes, even stone. Mining operations keep the peasants busy for a while, but only if there is a new dig happening. Its usually cleared within 2 seasons, tops.
From the central sorting stockpile, items are hauled to 3 different stockpiles next to my workshops.
High quality stockpile, next to forge, crafts, and jewelery workshops. Contains masterwork weapons and armor, masterwork finished goods (but NOT clothing items) and masterwork furniture of the type I want to decorate. This is where I decorate things out the wazoo. Silver flask? Worth 100,000 dorfbucks, full page of decorations.
Raw materials stockpile, also next to forge, crafts, and jewelry workshops. Contains metal bars, bones and skulls refuse types only, and gems. This is where the high quality goods are manufactured and decorated from.
Low quality stockpile. Next to carpenter, leatherworking, masons, and smelters. Contains non-masterwork weapons and armor, non-masterwork furniture, non-masterwork finished goods (but no clothing items), leather, wood, and stone. Periodically I mass designate the tile for melting. As all goblinite ends up here, right next to the smelter, it can be melted down quickly. Likewise all failures from my forges are melted down here and recycled.
Clothing is handled separately from the main sorting stockpile. My looms, cloth, and clothing stockpiles are all located close to each other. The clothing stockpiles are set to accept clothing and refuse of no type, which means that all cloth hauled to this stockpile will rot away. Clothing is stored in bins, and is continually produced at all times. This means that while clothing is continually being destroyed, it is at the same time being produced, so there is always fresh clothing coming off of the assembly line. If no one claims it, then it rots away. But there's always new and fresh clothes, so there's always something to wear.
I then have a garbage chute with a hauling route taking from all of these stockpiles. It takes only items I do not want, which are items I cannot melt down, and items that I do not need. A good example would be non-masterwork totems. I only keep the masterworks totems for decoration and then trade export. With endless sieges and zombie invasions there is no shortage of skulls, so the inferior quality skull totems get chucked into the atom smasher.
Food storage is handled in a conventional, non-quantum way.