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ISM INTE Exam - Topic 5 Question 3 Discussion
Topic #: 5
During an inventory review, a supply manager confirms that parts used for the maintenance of equipment sold during the previous year are still being stored in the warehouse. These parts cannot be used on current equipment. Which of the following BEST describes these parts'
Parts that were used for maintenance of equipment sold in the previous year but cannot be used on current equipment are best described as obsolete. Obsolete inventory refers to items that are no longer usable or saleable due to advancements in technology or changes in market demand. These parts should be identified and removed from active inventory to free up space and reduce carrying costs. Reference:
* Heizer, J., Render, B., & Munson, C. (2017). Operations Management: Sustainability and Supply Chain Management. Pearson.
* Chopra, S., & Meindl, P. (2015). Supply Chain Management: Strategy, Planning, and Op-eration. Pearson.
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