Overproduction

Overproduction (oversupply) in economics it's an excess of supply over demand. It is more strictly defined in lean manufacturing, where overproduction includes also includes defected products.
In older approach, enterprises treated as overproduction only those products that were not sold to the customers. However this didn't show the real range of overproduction. When the company introduces internal customer concept it treats each next workplace as a customer of earlier one. In that approach more overproduction is revealed. The next step is lean manufacturing which takes into account also those products, which were manufactured with defects and then repaired. [CEOpedia]
There are many reasons why oversupply may occur. An oversupply of a current product can be due to people waiting for an improved model in a series, such as smartphones from a particular maker. Oversupply can also occur when the price of the good or service is too high, and people are simply unwilling to buy it at that price. An oversupply may also simply be a case of a producer completely misreading the market demand for a product [Investopedia].

Sources:

Overproduction. CEOpedia. Retrieved from:https://ceopedia.org/index.php/Overproduction

Oversupply. Investopedia. Retrieved from: https://www.investopedia.com/terms/o/oversupply.asp