CIPS Level 4 Whole Life Asset Management L4M7 · Free Practice Question Easy
Question 13
When does obsolete stocks happen? Select TWO that apply:
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A
Implement Just in Time
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B
Keeping stock for a long time
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C
Increase in production demand
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D
Adopt lean manufacturing
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E
Changing in customer demand
Reveal correct answers
Correct answers: B, E
Explanation
Obsolete inventory refers to a product that has reached the end of its lifecycle. It happens when a business considers it to be no longer sellable or usable and most likely will not sell in the future due to a lack of market value and demand. Usually, inventory items become obsolete stock after a certain time period has passed and after they reach the end of their lifecycle.
Discussion
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