GlossaryEN1 min readUpdated: Jun 22, 2026

Overhangs

Warehouse managers and demand planners speak of overhangs when inventory levels persistently exceed forecasted demand, tying up working capital with no productive return.

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Last updated: 22 June 2026Published: 19 June 2025

Source: https://www.logistik-lexikon.de/begriff/ueberhaenge/

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Logistics Concept

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1 min

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101

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Definition & Explanation

Warehouse managers and demand planners speak of overhangs when inventory levels persistently exceed forecasted demand, tying up working capital with no productive return. Typical causes include errors in demand planning, sudden sales drops, supply chain disruptions, or slow-moving items that have become technically obsolete. In supply chain management, overhangs are treated as a form of waste: they inflate warehousing costs, occupy storage space, and can trigger write-downs or disposal expenses. They differ from deliberately built safety stock, which serves as a calculated buffer against demand peaks. Reduction strategies typically involve price promotions, markdowns, or – as a last resort – disposal.

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