Balancing Lead Recycling and New Opportunities in Sales Teams

I am in an inside sales/BDR type function for a parts distribution company. For one reason or another we closed out leads in our crm pipeline. Management likes to constantly recycle closed deals and place them back to prospect stage. Folks who have told us no for many years and many times have existing relationships with competitors and are happy with the arrangement. We have a large number new leads to chase that we cant get to due to this behavior. I do understand the concept of hearing many no's to get a yes. How much of this is common in sales orgs vs management obsession with taking down competitors?