scrap, spoiled goods, and defective work
manufacturing operations usually produce some imperfect units that can not be sold as regular items. the controls over imperfect items and operations that waste materials are important elements of inventory control. scrap materials may result naturally from the production process, or unavoidable mistakes during production. because the sale of imperfect items tends to damage a company's reputation, most companies introduce quality control techniques that prevent imperfect items from being sold. also, many companies are helping the environment by recycling and reducing waste. for example, 99% of scrap steel generated by toyota