overstocking

What Are the Risks of Overstocking?

Overstocking can have several negative consequences for a business:
Financial Strain: Capital is tied up in unsold inventory, which could otherwise be used for investment in other areas.
Storage Costs: Increased inventory requires more space, leading to higher storage costs.
Obsolescence: Products may become outdated or spoil, leading to losses.
Operational Inefficiency: Excess inventory can complicate inventory management processes, making it harder to track and manage stock.

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