Which of the following is an effective way to avoid stock obsolescence?

Reliable forecasting is essential for avoiding stock obsolescence because it enables businesses to anticipate changes in market demand, consumer preferences, and industry trends. By analyzing historical data, market signals, and predictive analytics, companies can more accurately estimate the quantity and types of products that will be needed in the future. This proactive approach helps ensure that inventory levels align with current market conditions, reducing the risk of holding surplus stock that may become outdated or unsellable.

In contrast, options such as ignoring market trends or delaying inventory checks can lead to a lack of understanding about what is needed in the marketplace. Increasing product lines might spread resources too thinly without addressing the actual demand for existing products, potentially exacerbating the issue of unsold stock. Therefore, dependable forecasting is the most effective strategy for managing inventory and minimizing the risk of obsolescence.