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Overproduction
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{{Short description|Excess of supply over demand of products being offered to an economic market}} {{About|the economic concept of overproduction|the musical term|overproduction (music)}} {{more citations needed|date=April 2010}} {{POV|date=February 2024}} In [[economics]], '''overproduction''', '''oversupply''', '''excess of supply''', or '''glut''' refers to [[excess supply|excess of supply]] over demand of products being offered to the [[Market (economics)|market]]. This leads to lower [[price]]s and/or unsold goods along with the possibility of [[unemployment]]. The demand side equivalent is [[underconsumption]]; some consider [[supply and demand]] two sides to the same coin β excess supply is only relative to a given demand, and insufficient demand is only relative to a given supply β and thus consider overproduction and underconsumption equivalent.<ref>{{Citation |last=Simpson |first=Brian P. |title=Underconsumption and Overproduction Theories of the Business Cycle |date=2014 |url=https://doi.org/10.1057/9781137336569_2 |work=Money, Banking, and the Business Cycle: Volume Two Remedies and Alternative Theories |pages=9β44 |editor-last=Simpson |editor-first=Brian P. |place=New York |publisher=Palgrave Macmillan US |language=en |doi=10.1057/9781137336569_2 |isbn=978-1-137-33656-9 |access-date=2022-07-20|url-access=subscription }}</ref> In [[lean thinking]], overproduction of goods or [[work in process|goods in process]] is seen as one of the seven wastes (Japanese term: ''[[Muda (Japanese term)|muda]]'') which do not add value to a product, and is considered "the most serious" of the seven.<ref name=eku>EKU Online, [https://safetymanagement.eku.edu/blog/the-seven-wastes-of-lean-manufacturing/ The Seven Wastes of Lean Manufacturing], ''Eastern Kentucky University'', accessed 6 March 2023</ref> <!-- This source links to a site that is flagged as a security risk by Firefox. Alternate source may be needed --> Overproduction is often attributed to previous '''overinvestment''' β creation of excess [[productive capacity]], which must then either lie idle (or under capacity), which is [[Profit (economics)|unprofitable]], or produce an excess supply.
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