Overstocking

Description

Overstocking involves deliberately maintaining inventory levels above immediate demand to ensure product availability, buffer against supply chain disruptions, and meet unexpected surges in customer needs. This strategy aims to prevent stockouts, lost sales, and production delays. Effective overstocking requires careful demand forecasting, storage management, and regular inventory review to balance the benefits of readiness with the risks of increased holding costs, obsolescence, and waste, thereby optimizing operational continuity and customer satisfaction.