Overstocked
Overstocked refers to inventory levels that exceed anticipated demand, resulting in excess stock that ties up capital and space. It is a concern in retail, wholesale, and manufacturing. Causes include inaccurate demand forecasting, aggressive buying tied to promotions, longer lead times, unexpected returns, and misaligned product assortment.
Impacts include higher carrying costs, greater risk of obsolescence or spoilage, markdowns or write-downs, reduced cash
Management strategies emphasize forecasting accuracy and inventory optimization. Tactics include ABC analysis, safety stock adjustments, just-in-time
Technology and metrics support control. Key measures include inventory turnover, days of inventory on hand, gross
Ongoing collaboration among merchandising, procurement, supply chain, and finance is essential to prevent overstock and maintain