This refers to holding excess inventory.
Overstocking occurs when the quantity of items held exceeds the amount required, or expected to be sold, in a given period. Overstocking can relate to raw materials or end products in manufacturing or products for sale in retail. Overstocking increases the holding costs of inventory and can result in waste due to deterioration. It is the opposite to ‘just in time’ inventory control.
Overstocking is a term normally found in financial management.
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