Excess Inventory Management

Abstract

Excess inventory, is a massive problem for many businesses, and it has several causes, some of which are unavoidable. Overstocks may accumulate through production overruns or errors. Certain styles and colours prove unpopular. With some products, computers and software, toys, and books—last year’s models are difficult to move even at huge discounts. Occasionally the competition introduces a better product. But in many cases the public’s buying tastes simply change, leaving a manufacturer or distributor with thousands (or millions) of items that the fickle public no longer wants. Hence the inventory is considered to be as unhealthy and of no use; leaving it to be in excessive thus causing the manufactures and the sellers to take some measures and deal with such a situation. Why is this area of study? The reason for covering this are of study is because of the lack of options and possibilities for the brands and companies to cater to once and by mistake stuck in this situation. A lot of brands have a tendency to let their stock go waste, or burn it or discard it with absolutely no regard to its consequences, because it may cause them tremendous amount of loss, if the stock is to be sent back or say rebranded. Hence, the idea behind this study is to bridge the gap between the wastage, loss of money and at the same time to find a feasible solution to deal with excessive inventory when experienced.