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Materials are physical substances used as inputs to Production or Manufacturing . Raw Material s are first extracted or harvested from the earth and divided into a form that can be easily transported and stored, then processed to produce "semi-finished materials". These can be input into a new cycle of production and Finishing processes to create "finished materials", ready for Distribution and Consumption .

An example of a raw material is Cotton , which can be processed into thread, which can then be woven into Cloth , a semi-finished material. Cutting and sewing the fabric turns it into a Garment , which is a finished material. Steelmaking is another example—raw materials are mined, refined and processed into Steel , a semi-finished material. Steel is then used as an input in many other industries to make finished products.


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