Avoiding costly overstock

Let's now focus on the overstock. As you might remember from the video, overstock creates unnecessary storage costs. These aren't the only costs our company incurs; there also are costs of goods sold, so the direct costs of purchasing the resalable goods, but we won't analyze them for now.

In this exercise, we will focus on avoiding the inventory bloat on storage-expensive items.

We do not recommend doing so, but if you lost progress you can load the solution workbook of the previous exercise 2_1_inventory_levels_solution.twbx from the Workbooks folder.