What is shrikage and how to control

Question

Accepted Answer

Shrinkage is the difference between recorded and actual inventory levels. It can be controlled by improving inventory management practices.

Shrinkage can occur due to theft, damage, or errors in recording inventory levels.
To control shrinkage, businesses can implement measures such as regular inventory audits, improving security measures, and training employees on proper inventory management.
For example, a retail store can install security cameras, conduct surprise audits, and train employees on how to properly handle and record inventory.
Effective inventory management can also help reduce shrinkage, such as implementing a just-in-time inventory system and using inventory tracking software.

Popular interview questions of Analyst