Shrinkage rate

Shrinkage rate calculation = average inventory average daily Cost Of Goods Sold

This ratio is also known as Shrink rate.

It is part of the logistics ratios for inventory analysis.

It measures the lost of products due to inventory discrepancies, to damages during the handling operations and also to discrepancies in the packaging inventories (pallet, containers…). This ratio is a good indicator of the supply and inventory control efficiency. T

→ Inventory management dashboard