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The Overstocked report lists items holding more inventory than they need - where days of supply runs well beyond your overstock threshold at the current sales rate. Key columns: product, variant, SKU, location, on-hand quantity, daily velocity, days of supply, excess quantity, and inventory value. Excess quantity is how many units sit above the optimal level, and inventory value is the capital tied up in that item. When to use it: to free up cash and space - candidates for promotions, markdowns, or a transfer to a location that needs them.
The overstock threshold is configured in Forecasting settings.