noun the amount by which something becomes smaller or less
Shrinkage can also be relevant in finance, where it may refer to a reduction in the value of an asset or investment over time.
Shrinkage refers to the loss of inventory due to theft, damage, spoilage, or errors in recording. It is a key metric in assessing the efficiency of a manufacturing process.
In retail, shrinkage is often used to describe the difference between the recorded stock levels and the actual stock levels due to factors like theft, administrative errors, or damaged goods.
Shrinkage plays a crucial role in supply chain management as it impacts inventory accuracy, forecasting, and overall operational efficiency.
In the publishing industry, 'shrinkage' may refer to the decrease in book sales or revenue due to factors such as piracy, returns, or theft.
Psychologists may use the term 'shrinkage' to describe the reduction in a client's symptoms or issues during therapy sessions.
Retail managers often use 'shrinkage' to refer to the loss of inventory due to theft, damage, or errors in recording sales.
In manufacturing, 'shrinkage' can refer to the decrease in size or volume of a material during the production process, such as in plastic molding.