Operationally, excess and obsolete inventory items generate little interest because they do not create emergencies and so few companies pay much attention to this inventory unless or until they undertake a specific program of review.
In the normal day-to-day management these inventory items are mostly ignored and the focus tends to be on items that stock out or, at the least, need reordering.
However, excess and obsolete items provide no benefit to your business and so should be eliminated as part of normal inventory management. The accompanying figure shows a conceptual representation of excess and obsolete inventory.
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