ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Obsolence
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Back order
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Seasonality
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Finished Good
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Detailed explanation-1: -8. The cost of obsolescence and redundancy: Obsolescence is usually due to items being held in stock for long periods of time, during this time advancing technology makes the item outdated. It occurs in retail organisations, for example, when customer would no longer want to purchase such items.
Detailed explanation-2: -Answer and Explanation: Reason: Obsolescence cost is the example of quality cost because the asset becomes obsolete because of introduction of new technology of higher quality.
Detailed explanation-3: -Inaccurate Forecasting. Bad forecasting of consumer demand means you risk will end up with excess stock. Poor Product Quality or Design. Inadequate Inventory Management System. Long Lead Times. No Management of Obsolete Inventory. 03-Feb-2015