What type of inventory is one of the most damaging from a sustainability perspective?
- A) Raw materials
- B) Work in process
- C) Finished goods
- D) Landfill
The most damaging type of inventory from a sustainability perspective is finished goods. So the answer is (C).
Finished goods have the highest environmental impact because they have already been produced and are ready to be sold. This means that they have already consumed resources and generated waste. Raw materials and work in process have not yet been produced, so they have not yet had an environmental impact. Landfill is a disposal site, so it does not have a direct impact on inventory.
Here is a table that summarizes the environmental impact of different types of inventory:
| Inventory type | Environmental impact |
|---|---|
| Raw materials | Low |
| Work in process | Medium |
| Finished goods | High |
| Landfill | None |