Final answer:
Excess inventory, also known as overstock, refers to the surplus goods that have not been sold and are stored beyond the usual replenishment cycle.
Step-by-step explanation:
Storage for inventory held in excess of the period for normal replenishment is known as excess inventory or overstock. This occurs when a business has produced or acquired more goods than it has been able to sell, leading to inventory accumulation. Businesses aim to minimize excess inventory as it ties up capital and can increase storage costs. The level of inventories, including those that are unsold and sitting in warehouses or on store shelves, is a critical component of business management and economic indicators. It reflects the health of business demand and supply dynamics, with inventory levels declining if sales are stronger than expected, or rising if sales are weaker than anticipated.