|Material losses include loss of quantity, weight or volume of materials.
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.