Overstocking

Description

Overstocking involves intentionally maintaining inventory levels above immediate demand to ensure product availability, buffer against supply chain disruptions, and capitalize on bulk purchasing advantages. This strategy aims to prevent stockouts, meet unexpected surges in customer demand, and stabilize operations during supply delays. Effective overstocking requires careful forecasting, inventory management, and regular review to minimize excess holding costs, reduce waste, and optimize resource allocation, thereby remedying issues of lost sales and operational inefficiencies.