What is the difference between direct and indirect materiel?

Direct materiel refers to the items that are directly used in the production of goods or services. This includes raw materials, components, and any items that become a part of the final product. On the other hand, indirect materiel consists of items that support the overall operations but do not directly go into the end product. This can include tools, maintenance supplies, and office supplies. Understanding this distinction is vital for effective inventory management and operational efficiency, as different management strategies may be necessary for direct versus indirect materiel.

The other options do not accurately capture the essential characteristics that differentiate direct and indirect materiel. While the cost of materiel can vary, it is not a defining factor. Likewise, not all indirect materiel is consumable, and oversight requirements depend on various factors beyond whether materiel is direct or indirect.