(ɒbsəlesəns ) uncountable noun. Obsolescence is the state of being no longer needed because something newer or more efficient has been invented. The aircraft was nearing obsolescence by early 1942.
How do you use obsolescence in a sentence?
the process of becoming obsolete; falling into disuse or becoming out of date. (1) The aircraft was nearing obsolescence by early 1942. (2) Within earth science literature, the most important obsolescence study to date is that by Kohut.
What are the types of obsolescence?
Separate from physical deterioration, the five primary type of obsolescence are identified as follows:
- Technological Obsolescence.
- Functional Obsolescence.
- Legal Obsolescence.
- Style/Aesthetic Obsolescence.
- Economic Obsolescence.
What is obsolescence risk?
Obsolescence risk is the risk that a process, product, or technology used or produced by a company for profit will become obsolete, and thus no longer competitive in the marketplace. This would reduce the profitability of the company.
What is called obsolescence in accounting?
Obsolescence is a notable reduction in the utility of an inventory item or fixed asset. The determination of obsolescence typically results in a write-down of the inventory item or asset to reflect its reduced value.
What is obsolescence cost?
Obsolescence costs are incurred when an item in inventory becomes obsolete before it is sold or used. … Obsolescence costs include the labor and materials consumed in producing the original product and the cost of disposal (e.g., identifying, transporting and disposing obsolete inventory).
What is obsolescence in design?
In economics and industrial design, planned obsolescence (also called built-in obsolescence or premature obsolescence) is a policy of planning or designing a product with an artificially limited useful life or a purposely frail design, so that it becomes obsolete after a certain pre-determined period of time upon which …
What is the opposite of obsolescence?
▲ Opposite of the process of becoming obsolete or outdated and no longer used. modernity. Noun.
Is Antiquation a word?
the process of making antiquated or the condition of being antiquated.
How can obsolescence be prevented?
Avoiding obsolescence or minimizing its costs can be accomplished through actions in planning and programming; design; construction; operations, maintenance, and renewal; and retrofiting or reuse of a facility (throughout the facility life cycle).
What causes unexpected obsolescence?
Unforeseen obsolescence may occur because of a new invention or discovery which destroys the market for the asset or because a shift in relative prices makes it uneconomical to continue using the asset.
What are the main reason of obsolescence of assets?
(I) Technological changes. (II) Improvement in production method. (III) Change in market demand for the product or service output.
What is obsolescence example?
For example, in real estate, it refers to the loss of property value due to an obsolete feature, such as an old house with one bathroom in a neighborhood filled with new homes that have at least three bathrooms.
How do you calculate obsolescence cost?
You can calculate obsolescence by taking the difference between reproduction cost new, $2000+, and replacement cost new, $100, which comes to $1900. Another example of this can be seen with multi-story manufacturing buildings.
What is EOQ and its formula?
Also referred to as ‘optimum lot size,’ the economic order quantity, or EOQ, is a calculation designed to find the optimal order quantity for businesses to minimize logistics costs, warehousing space, stockouts, and overstock costs. The formula is: EOQ = square root of: / holding costs.
What is stock obsolescence?
Obsolete stock is referring to inventory that has reached the end of its product life cycle and has not been sold for an extended period meaning it has to be written off, often causing large losses for a company. It is more commonly referred to as ‘dead inventory’ or ‘excess inventory’.
What is obsolescence loss?
Economic depreciation (or obsolescence) is the loss in value resulting from factors external to the asset (or group of assets) such as changes in the supply of raw materials or demand for products.
What is obsolete material?
Obsolete Materials means Device Proprietary Components, Semi-Manufactures or Basic Materials that are held in Stock by Aerogen and which for technical, commercial or other reasons can no longer be accepted and used or have been obsoleted by Aerogen or a sub-supplier.
What is obsolescence and why does it happen?
Obsolescence frequently occurs because a replacement has become available that has, in sum, more advantages compared to the disadvantages incurred by maintaining or repairing the original. Obsolete also refers to something that is already disused or discarded, or antiquated.
What is called technology obsolescence?
When a technical product or service is no longer needed or wanted even though it could still be in working order. Technological obsolescence generally occurs when a new product has been created to replace an older version. +1 -1.
How do you manage obsolescence?
5 BOM Obsolescence Management Tips
- Step 1: Break Down the Bill of Materials. …
- Step 2: Filter Out Obvious Low Risk Components. …
- Step 3: Assess Obsolescence Risk for the Remaining Components. …
- Step 4: Mitigation Decision and Component Prioritization. …
- Step 5: Repeat Process Every 6 Months.