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Data in an Enterprise System 35

Raw Materials Semifi nished Goods Finished Goods Trading Goods

• Derailleur gear • Wheel assembly • Deluxe touring bike (3 colors) • Elbow ads
assembly
• Professional touring bike (3 colors) • Knee pads
• Frame
• Men’s standard off-road bike • Off-road helmet
• Seat kit
• Women’s standard off-road bike • Road helmets
• Handle bar
• Repair kit
• Pedal assembly
• Air pump
• Chain
• Water bottle cage
• Brake kit
• First aid kit
• Warranty document
• T-shirt
• Packaging
• Tire

• Tube
• Wheel
• Nuts and bolts

Table 2–2: GBI material list

an example of semifi nished goods from GBI. GBI purchases tires,
wheels, and tubes and then uses these raw materials to create wheel
assemblies.
• Finished goods (FERT) are created by the production process
from other materials, such as raw materials and semifi nished goods.
They are generally not purchased. As a result, the material master
for fi nished goods will include data related to production and ful-
fi llment, but not procurement. An example of a fi nished good from
GBI is the deluxe touring bicycle, which is produced from raw mate-
rials (e.g., frames) and semifi nished goods (e.g., wheel assemblies).
• Trading goods (HAWA), like raw materials, are purchased from
a vendor. Unlike raw materials, however, trading goods are resold
to customers. Signifi cantly, the company does not perform any addi-
tional processing of the material prior to reselling it. Therefore, the
material master for trading goods will include data related to pur-
chasing and selling but not production. An example of a trading good
from GBI is a helmet. GBI simply purchases the helmets from a sup-
plier and resells them to its customers; no other steps are involved.

Material Groups
Related to material type is the concept of a material group, which includes
materials with similar characteristics. For example, all of the materials used in the
production of bicycles, such as tires and tubes—which are raw materials—and
wheel assemblies—which are semifi nished goods—can be included in one
material group called production. As another example, all bicycles, which are

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