ECONOMICS

Detailed explanation-1: -Increased storage costs The cost to store surplus stock is one of the most prominent downsides of overstocking. Warehousing costs are not cheap, and they don’t just include the cost to rent a warehouse or storage space but also the cost of labor to manage your warehousing operations.

Detailed explanation-2: -Overstocking, also called “surplus stock, ” happens when stores purchase more product than they sell. Over-ordering inventory leaves retailers with too much stock, and that excess stock is left sitting on store shelves or in the warehouse, which can hurt profitability.

Detailed explanation-3: -POS Inventory management system allows the business owners to have multiple sales locations and track inventory at each location without being present. The boss can be away and no longer worry about employee theft.