The overstock report identifies where your store has more inventory than is needed to meet demand.
Ideally, the amount of stock you hold for one variant should be enough to cover the planning period (the variant's lead time + days of stock) to minimize storage costs. If you have stock left over after the planning period, that stock is considered overstock.
Configuring the overstock report
The "Overstocked units" column tells you how many units are overstocked by the end of the next planning period, along with the next planning period's end date.
In addition, you can add columns for "Overstocked retail" and "Overstocked cost", which will tell you the value of the overstocked units, making it easier to make business decisions about offloading the stock.
If you are filtering the report on a broader level (e.g. Products, Vendors), you can also add a column for "Overstocked variants", which tells you how many associated variants are overstocked. (If filtering on the variant level, that number will always be 1.)
The report's date range refers to a historic period, intended to show you metrics like sales and revenue for that period which can help with decision-making.
The chosen date range does not affect the forecasted units on hand after the planning period.
By default, the Overstock report is filtered by the following:
Overstocked units: minimum 1
Last received at: (2 months prior to current date)
Age in days: minimum 60
You can edit or remove the filters to expand or narrow the results. For example, if you wish to only see stock that was last received a month ago, you would edit the "Last received at" date.
Overstock is calculated by looking at the planning period (lead time + days of stock) and multiplying it by the sales velocity to get forecasted demand. The forecasted demand is then subtracted from the current and incoming stock, giving you the stock left at the end of the planning period.