Definition Inventory Shrinkage. Description.
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:
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Theft by employees (shoplifting) or customers.
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Inventory counting errors.
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Accounting errors.
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Fraud.
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Loss and damage.
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Perishability,
detoriation.
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Managing your Inventory: Quick Introduction to Just in Time, Stock Review and ABC Analysis
Basic Understanding of 3Inventory Management Techniques...
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