Excess Inventory
Inventory Management
Excess Inventory
Inventory above the quantity reasonably required by demand, service and replenishment policies.
Examples
- 01The warehouse holds EUR 400,000 of excess inventory: stock above what demand and safety stock rules require.
- 02Each month, the material planner reviews excess inventory by item class and asks why it was ordered.
- 03Stopping automatic orders for items with excess inventory cuts stock by EUR 150,000 within three months.