What does "excess inventory" refer to in Materiel Management?

Excess inventory refers to items that are overstocked and not expected to be utilized in the near future. This surplus can occur due to various factors such as overestimation of demand, changes in operational needs, or ineffective inventory management. In Materiel Management, managing excess inventory is crucial because it ties up resources that could be utilized elsewhere, increases storage costs, and can lead to wastage if items become obsolete or deteriorate over time. Effective inventory management strategies often include regular assessments to determine inventory levels and the implementation of practices to reduce surplus stock, such as timely procurement processes and accurate forecasting of demand. This understanding helps streamline operations and maintain an efficient supply chain.