What is the definition of overstock?

What is the definition of overstock?

Definition of overstock (Entry 2 of 2) 1 transitive + intransitive : to stock too much or too many of (something) : to get or have excess inventory of (a good or goods) The big, reputable department stores frequently overstock designers’ wares for Christmas, Valentine’s Day, and Mother’s Day.—

How is overstock pricing calculated?

Stockout cost formula:

1. Number of Days Out of Stock x Average Units Sold Per Day x Price or Profit Per Unit) + Cost of Consequences = Stockout Cost.
2. Cost of Inventory On Hand x Excess Inventory = Annual Overstock Waste Expense.
3. Total Returns / Gross Sales = Real Return Rate.

Why do businesses overstock?

Having too much inventory is better than having no inventory, as this would prevent any production. Overstocking has the benefit that it allows a business to meet any unexpected orders. But as a rule it makes financial sense for businesses to keep down the amount of stock they hold.

Why is it important not to overstock?

By taking up shelving or back-of-store stockroom space, overstock prevents the placement of products that could sell. This is a lost opportunity cost that can be hard to recoup as the need to expedite the sale of overstock goods often requires more time and energy, deeper discounts, and increased expenditure.

What is another word for overstock?

In this page you can discover 20 synonyms, antonyms, idiomatic expressions, and related words for overstock, like: , oversupply, overfill, cram, overload, burden, load, excess, fat, glut and overage.

What is the opposite of overstock?

Antonyms & Near Antonyms for overstock. dearth, lack, scarcity, want.

How do you delete Overstock?

If your stockroom runneth over, here are a few tips and tricks that can help you move your overstock.

1. Develop inventory strategies. …
2. Get creative with your promotions. …
3. Donate it. …
4. Pivot to new products. …
5. Work with a merchandise liquidator. …
6. Be transparent with customers about what’s driving sales.

What is overstocking in inventory management?

Overstock means having too much stock in a warehouse that has not sold which increases storage costs and reduces working capital.

How do you reduce stockouts?

How to reduce stock levels and avoid stock outs.

1. Master your lead times.
2. Automate tasks with inventory management software.
3. Calculate reorder points.
4. Use accurate demand forecasting.
5. Try vendor managed inventory.
6. Implement a Just in Time (JIT) inventory system.
7. Use consignment inventory.
8. Make use of safety stock.

How can we prevent Understocking?

Use an Inventory Management Software One of the best things a company can do for itself is to use inventory management software to help prevent overstocking and understocking. Don’t try to do it all on your own. Instead, use the latest technology to keep your inventory stocked at the appropriate level.

What are synonyms for surplus?

In this page you can discover 47 synonyms, antonyms, idiomatic expressions, and related words for surplus, like: leftover, surplusage, remainder, extra, overabundance, overplus, residue, reserve, spare, overstock and over.

What is the synonym of stock?

store, supply, stockpile, reserve, hoard, cache, reservoir, accumulation, quantity, pile, heap, load. fund, bank, pool, mine, repertoire, repertory, inventory. collection, selection, assortment, variety, range.