ISM Exam INTE Topic 3 Question 20 Discussion

Actual exam question for ISM's INTE exam

Question #: 20
Topic #: 3

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'

ASurplus

BExcess

CObsolete

DExpired

Show Suggested Answer

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.

by Ronny at Jan 12, 2025, 11:49 AM

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Charlesetta

11 days ago

I think the parts are obsolete.

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Milly

13 days 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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