What is the Excess Inventory?

The term Excess inventory can be defined as it is a product that has not been sold yet and exceeds the targeted consumer demand for that particular product.

Why does Excess Inventory Exist?

The number of disruptions in the product cycle results in excess inventory. The factors can be categorized into three essential points,

● The Delays due to shipment, which involves factors like order frequency processing times and international regulations.

● Technical Issues caused by purchase orders, system integration, EDI processing, and lack of visibility into the business.

● Other factors, like returns or quality requirements

Generally, it represents a kind of mismanagement of stock demand due to the following factors like inaccurate projections, over-buying, canceled orders, unforeseen weather changes, a bad economy, or late or early delivery of goods.