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ISM Exam INTE Topic 3 Question 20 Discussion

Actual exam question for ISM's INTE exam
Question #: 20
Topic #: 3
[All INTE Questions]

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'

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Suggested Answer: C

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.


Contribute your Thoughts:

Evelynn
27 days ago
But could they be considered as surplus or excess instead?
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Sharen
28 days ago
Haha, I bet the supply manager is having a real blast trying to figure out what to do with all these useless parts. Sounds like a job for the Obsolete Parts Disposal Specialist!
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Reed
2 days ago
B) Excess
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Lorita
4 days ago
A) Surplus
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Mi
30 days ago
B. Excess, for sure. The supply manager confirmed that these parts are still being stored, even though they can't be used. That means they're excess inventory.
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Brandon
1 months ago
I agree, they are no longer useful.
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Latosha
1 months ago
D. Expired sounds right to me. These parts have reached the end of their useful life, so they're essentially expired.
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Valene
2 days ago
B) Excess
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Alaine
4 days ago
A) Surplus
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Charlesetta
1 months ago
I think the parts are obsolete.
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Milly
1 months ago
I think the answer is C. Obsolete. These parts are no longer compatible with the current equipment, so they're considered obsolete.
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Olene
14 days ago
C) Obsolete
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Lynelle
15 days ago
B) Excess
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Glendora
17 days ago
A) Surplus
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