Homonym: Shrinkage (Reduction)
Shrinkage refers to the loss of inventory that occurs in retail and other businesses, often due to factors like theft, damage, or administrative errors. It can significantly impact a company's profitability, as it represents products that are paid for but not sold.
To manage shrinkage, businesses often implement strategies such as improved security measures, employee training, and inventory management systems. By addressing the causes of shrinkage, companies can reduce losses and enhance their overall operational efficiency, ultimately benefiting their bottom line.