Answer:
Inventory that is out-of-date or inventory that has not been in recent demand
Step-by-step explanation:
Obsolete Inventory is best described as the inventory which is currently neither used nor has been sold and the same could be assumed that it would not be used or sold in the future as well. When recording obsolete inventory the company writes it off and this is shown as a loss.
In the given question, the first option mentions inventory in a different part of the supply chain. This is not true as obsolete inventory will not be considered in the supply chain anymore.
The next option describes inventory in transit, no longer stored at the warehouse. As obsolete inventory is inventory that is not sold, therefore, this option is incorrect.
Then the third option mentions inventory that is out-of-date or inventory that has not been in recent demand. Yes, this option is correct as it is referring to obsolete inventory as out-of-date.
Finally, the last option refers to inventory in production, expected to be delivered and stored in the near future. Obsolete inventory is already produced but is unable to be sold or used, therefore, this option is also incorrect.