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ISM Exam INTE Topic 5 Question 3 Discussion

Actual exam question for ISM's INTE exam
Question #: 3
Topic #: 5
[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'

Show Suggested Answer Hide 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.


Contribute your Thoughts:

Earleen
4 months ago
I bet the supply manager is 'storing' these parts in their garage at home. Talk about a warehouse clearance sale!
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Ilda
4 months ago
Expired, like a carton of milk past its due date. These parts are as good as garbage now. The supply manager needs to get their act together.
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Kayleigh
3 months ago
D) Expired
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Maira
3 months ago
C) Obsolete
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Daren
3 months ago
B) Excess
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Glenn
3 months ago
A) Surplus
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Bettye
5 months ago
I don't think so, surplus implies extra, not outdated.
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Tarra
5 months ago
But could they be considered as surplus instead?
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Buddy
5 months ago
Obsolete, hands down. The equipment's been sold, so these parts are as useful as a chocolate teapot. Time to send them to the scrap heap.
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Irene
4 months ago
D) Expired
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Albert
4 months ago
C) Obsolete
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Brendan
4 months ago
B) Excess
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Felice
4 months ago
A) Surplus
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Ronny
5 months ago
I agree, they are no longer useful.
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Kip
5 months ago
Hmm, I'd say these are excess parts. I mean, if they're not being used on current equipment, they're just taking up valuable warehouse space.
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Gerardo
5 months ago
Definitely obsolete. Who keeps parts for equipment that's no longer sold? Sounds like someone's been slacking on inventory management.
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Cordell
4 months ago
D) Expired
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Gail
4 months ago
C) Obsolete
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Hyman
4 months ago
B) Excess
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Rosamond
4 months ago
A) Surplus
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Bettye
5 months ago
I think the parts are obsolete.
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