Obsolete and Obsolescence Stock

“From the moment a product comes out of the factory, its journey towards obsolescence has begun. This is known as the ----

• Stock that has no further requirement by the customer of the supplies department.

Refers to stock that is declining in requirement, but it still has some useful life.

• When a product can no longer keep up with technological advances in the market. 

• This results in when an item of stock no longer functions the way it did when it was first purchased.

_____________also called built-in obsolescence

When a manufacturer postpones the introduction of technological improvements of its products even though the improvements could be introduced.

• This results when an item of stock is no longer desirable because it has gone out of fashion.

Merchandise that’s never been sold to a customer

• Activities that are undertaken taken in order to mitigate the effects of obsolescence.