Excess Inventory

Excess Inventory

Also referred to as surplus inventory, denotes the surplus stock held by a company beyond what is necessary to meet demand and safety stock requirements.

While maintaining a certain level of excess inventory can serve as a buffer against unexpected spikes in demand, excessive surplus inventory can pose significant challenges for businesses. These challenges include increased storage costs, tied-up capital, risk of obsolescence, and potential disruptions to cash flow and operations.

Related Terms

Brand Refresh

When a brand improvises its existing image and communications while maintaining its core identity.

Generic Brand

A consumer product without a widely recognized name or logo, often lacking extensive advertising compared to