Management of "Defectives"
PES utilizes an inventory tracking system that allows the management
of defective (core) inventory. Core inventory is the amount of defective inventory that is assumed to
be a repairable item after visual inspection. Cores that arrive at NPD to be repaired are either sent
back to an end user or to a central warehouse that the OEM could then use as part of an advanced exchange program.
All of NPD inventory, including defectives, is bar-coded with a unique identifier so that a record of the repair from the time
it was received to the time it was shipped can be traced.