How to Calculate Inventory Shrinkage
What is Inventory Shrinkage?
Inventory Shrinkage Calculator helps logistics and supply chain professionals optimize operations and reduce costs.
Formula
Shrinkage = (Book Inventory - Physical Count) / Book Inventory × 100
Step-by-Step Guide
- 1Compare system count to physical count after audit
- 2Apply the formula with your specific values
- 3Use the result to optimize operations or costs
Worked Examples
Input
1000 book, 970 physical
Result
Shrinkage = (1000-970)/1000 × 100 = 3%
Common Mistakes to Avoid
- ✕Using incorrect units or dimensions in the calculation
- ✕Ignoring surcharges and accessorial fees
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