Hey, I$\text{'}$m helping with inventory management, and I$\text{'}$m wondering: What can cause excess and obsolete inventory? What should we be wary of$?$

Teddi, that's a great question! Excess and obsolete $($E&O$)$ inventory is a result of fast$-$changing trends. We only need to be wary of one thing: products in highly volatile markets, like fashion and technology. They can quickly become obsolete, resulting in excess inventory on our end.

Teddi, that's a great question! Excess and obsolete $($E&O$)$ inventory is a result of poor decision$-$making. More specifically, it can be caused by failure to pay attention to market cues, misalignment of the organization, faulty product design, or miscalculations in the sales and operating and forecasting process. We should be wary of these.

Teddi, that's a great question! Excess and obsolete $($E&O$)$ inventory is just inventory that has been damaged and is now taking up space in a warehouse and cannot be sold. The only thing to worry about is proper handling.