← Back to glossary Category: Operațional Overstock Quick answer: Stock above the level demand requires, locking capital, taking space and risking becoming dead stock. Key takeawaysOrders too large (MOQ, poorly calculated volume discounts)Optimistic forecastingLack of visibility on stock across multiple locations What overstock is Overstock means holding more stock than real demand justifies. It differs from dead stock (which no longer sells at all): overstock will sell, but too slowly for the investment. Why it matters to the board Overstock is working capital locked for nothing, with holding costs, expiry/depreciation risk and opportunity cost. It is the mirror of stockouts — just as costly. Causes Orders too large (MOQ, poorly calculated volume discounts) Optimistic forecasting Lack of visibility on stock across multiple locations How Azuvio helps Azuvio highlights low-turnover SKUs with excessive coverage (days of supply), consolidates stock across locations and adjusts order proposals to prevent overstocking. Frequently askedDifference between overstock and dead stock?Overstock sells, but too slowly; dead stock effectively no longer sells. Untreated overstock becomes dead stock.How do I prevent overstock?Through order quantities based on EOQ + forecast rather than big discounts, and consolidated stock visibility across locations. Where Azuvio fitsSoftware OMSSoftware WMSConectori ERP Related termsDead stock — Goods unsold for a long period that lock capital and space, with little prospect of selling at normal price.Inventory turnover — How many times stock is fully sold and replenished in a period — a measure of capital efficiency.Working capital — The difference between current assets and current liabilities — the cash a company has to fund daily operations. A key financial-health indicator.Economic Order Quantity (EOQ) — The optimal order quantity that minimises the combined total of ordering and holding costs. Last updated: 2026-07-06