Retail firms are at risk that their inventory will become obsolete. What can a firm do to minimize this risk? What types of firms are most at risk?

Obsolete inventory is the excess inventory in a firm that no longer has xxx the market. Causes of obsolete/excess inventory include xxx product design, long lead times, lack of effective inventory xxx systems, inaccurate forecasting of demand, and poor quality product xxx inventory is detrimental because it affects the profitability and performance of a xxx as a result of reduced sales income. Therefore, inventory control is a xxx used by most businesses to manage their level of inventory by taking into xxx the items to buy/produce and the xxx of each.

Using a comprehensive and efficient inventory tracking system can help a firm manage the risk of obsolete inventory. For example, a firm can use xxx systems such as kanbanto or vendor-managed inventory (VMI) to reduce supply uncertainty (Kholopane, 2016). The system helps the suppliers to xxx needed inventory hence reducing not only xxx inventory and stock-outs but also transaction and handling costs.

Sales and operations planning helps a firm to forecast the xxx supply and demand. These strategies allow the firm to offer the right services/products at the xxx time in the right quantity at the lowest possible price. The firm should also adopt flexible supply chains and xxx to help promote xxx satisfaction, enhance business xxx and profitability, and boost return on investment (Lee, Song & Cheong, 2018). In addition, offering after sales support, promotions, and discounts to the customers encourage them to buy more hence xxx market share and demand.

Another strategy involves avoiding damage of goods in the firm by xxx employees on how to properly handle goods and implementing policies that xxx proper movement and storage of goods in the firm…