Some examples of material losses which are incurred from the following:

• Obsolescence re: change of specification results in certain type of materials become useless
• Losses during handling like in pilferage, breakage, etc
• Storage like fading, rusting, warping affect the materials or inventories
• Loss during production due to inadequate or inefficient equipment, defective materials, accidents
• Inherent causes re: evaporation of liquid materials
• Inefficient stores issues when excess materials are not returned and left deteriorating or idling or get mixed with other unusable items and disposed off.