Question - When we think about inventory that is being produced in a factory, we also need to think about any fixed assets that are used to manufacture these goods. Are they movable enough that they are at risk of theft? Should they also be included in the cycle counts or annual inventory counts that are performed? We also need to think about production orders that necessitate the production process.
Suppose a production order was issued for a product that was already overstocked in the company's warehouse? Why would this occur and what is the best way to deal with this situation?