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What is excess stock in a business? |
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This is a general term that can have many specific meanings in specific industries or situations. Generally, businesses have a target of how much inventory they want to keep on hand - enough to fill orders until the next shipment comes in, or enough to fill orders on hand, depending upon how the specific business operates.
Excess stock is when a business has more inventory on hand than it wants. It might be a retail business that tries to turn its inventory every two weeks, and they have six months' worth of something. Again, specific situation differ, but in general it just means they have more inventory on hand than they need or can afford or can use.
Excess stock is when a business has more inventory on hand than it wants. It might be a retail business that tries to turn its inventory every two weeks, and they have six months' worth of something. Again, specific situation differ, but in general it just means they have more inventory on hand than they need or can afford or can use.
First answer by MargaretBartley. Last edit by MargaretBartley. Contributor trust: 0 [recommend contributor]. Question popularity: 1 [recommend question].
