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Inventory
Overstock
Overstock is inventory that materially exceeds the economically expected demand.
Also known as
Excess inventory
Direct answer
What is Overstock?
Overstock is inventory that materially exceeds the economically expected demand. Excess stock ties up cash, creates carrying cost, and raises markdown or obsolescence risk. It should be identified from forecasts, not a single age threshold.
Practical example
A variant has 14 months of cover, declining demand, and no planned campaign. Units above the target stock are classified as overstock.
What teams should remember
Overstock is inventory that materially exceeds the economically expected demand.
Excess stock ties up cash, creates carrying cost, and raises markdown or obsolescence risk. It should be identified from forecasts, not a single age threshold.