What I found interesting is getting rid of obsolete inventory.
1. Read the following article and write a discussion on which point you found to be most interesting?
https://blog.capterra.com/cost-reduction-inventory…
2. Reply to two students posts below
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Krystal Schmitt
Get rid of obsolete inventory
I would choose to get rid of all inventory that is considered obsolete, dead inventory is an undesirable asset that reduces the opportunity to use valuable space, for other inventory. By holding onto dead inventory, it will lead to reduced earnings, and increased backlogs. It is important to manage excess and dead inventory and by using strategies, such as the scrapping of excess inventories, disposal at discount prices to suppliers and customers.
I have listed a few away to get rid of any obsolete inventory
Sell to customers at a discounted price.
Liquidate excess inventory
Scrap it
Donate it
Recycle it
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Coral Nettles
What I found interesting is getting rid of obsolete inventory. Obsolete inventory can be a problem that I’m sure many business comes across. It is the worst kind of inventory to have next to no inventory. I say this because it will increase a business cost of inventory and will be very hard to get rid of. This shows that the business haven’t been following inventory management practices. Obsolete inventory I believe can be caused by poor quality product or design. If a business offers a high-quality product it should show reducing in obsolete inventory.
If a business have obsolete inventory, the best thing to do is deal with it right away. If you don’t it will continue to hurt your business the longer it sits in your warehouse. You can write obsolete inventory off at the end of the year and take a loss and move forward. You can also donate obsolete inventory for tax deductions as well.
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