Inventory Shrinkage

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What is Inventory Shrinkage? Meaning.

Inventory Shrinkage is the difference between the booked inventory a company should have as a result of its sales, purchasing and manufacturing processes and the  actual inventory it has on hand. It is an unplanned and unwanted loss of inventory.

Major sources of shrinkage include:

  • Theft by employees (shoplifting) or customers.

  • Inventory counting errors.

  • Accounting errors.

  • Fraud.

  • Loss and damage.

  • Perishability, detoriation.

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Inventory Shrinkage Special Interest Group.

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Forum about Inventory Shrinkage.

🔥 NEW What is Let-size Inventory?
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Managing your Inventory: Quick Introduction to Just in Time, Stock Review and ABC Analysis

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