The value of the trenching machines, purchased at a cost of $85,000 each three years ago, should be categorized as historic in the asset management system. This refers to the original purchase cost of the assets, which is recorded for accounting and asset tracking purposes. It provides a baseline for depreciation calculations and asset management. References: Accounting standards specify that assets should be recorded at their historical cost to provide accurate financial reporting.

Implementing a Corrective Action Plan (Option C) will be most helpful in resolving the issue of scratched parts. This plan involves identifying the root cause of the problem, implementing changes to prevent recurrence, and monitoring the effectiveness of these changes. A structured approach to corrective action can address quality issues efficiently and prevent future disruptions. Reference: Quality management systems and corrective action planning.

Point-of-use storage refers to the placement of inventory close to where it is needed in production. This approach supports just-in-time and Kanban systems by ensuring materials are readily accessible, reducing handling and transit times. Reference: Lean manufacturing principles emphasize minimizing waste, and point-of-use storage is a key strategy.

To align procurement with the organization's strategy, the supply manager should first review existing procurement practices to determine their strategic or tactical nature. This assessment provides insight into how procurement supports overall business goals and identifies areas for alignment and improvement, ensuring procurement adds maximum value.

Fitness for purpose" measures service quality by assessing whether a product or service meets the intended use and customer requirements. It focuses on customer satisfaction and the degree to which the service fulfills its purpose, which is crucial for evaluating overall service quality. This approach helps organizations align their offerings with customer expectations, ensuring high standards of service delivery.

Investment recovery focuses on recouping value from obsolete or excess inventory. Slow-moving materials often require such actions to minimize losses and free up resources. This practice is part of effective inventory management and resource optimization strategies.

Parts that were used for maintenance of equipment sold in the previous year but cannot be used on current equipment are best described as obsolete. Obsolete inventory refers to items that are no longer usable or saleable due to advancements in technology or changes in market demand. These parts should be identified and removed from active inventory to free up space and reduce carrying costs. References:

•Heizer, J., Render, B., & Munson, C. (2017). Operations Management: Sustainability and Supply Chain Management. Pearson.

•Chopra, S., & Meindl, P. (2015). Supply Chain Management: Strategy, Planning, and Op-eration. Pearson.