Definition
A part number for which new customer orders are no longer accepted from a certain date and which shifts to service-part status, while inventory and service transactions are still allowed; its transaction permissions are the opposite of "Retired," and the two must not be conflated under the word "obsolete."
In detail
Obsolete refers to part numbers that are no longer actively promoted but can still be transacted, such as products that have been discontinued but still have limited customer demand. It addresses inventory management issues at the end of the product lifecycle, balancing the need to meet remaining demand while avoiding over-investment. The difference from Retired parts is in transaction permission: Obsolete parts can still be sold, while Retired parts cannot. In the system, Obsolete parts are typically managed separately, with controlled inventory levels, forming clearance plans or last-buy opportunities.
Example in practice
A equipment manufacturer stops promoting an old model, but some customers still need spare parts. The part number is marked as Obsolete: from the announcement date, no new customer orders are accepted, but spare parts are still supplied according to service demand. The company maintains a small Safety Stock, produces to order, and guides customers to upgrade to the new model at the appropriate time. This serves existing customers while gradually exiting the market.