Shrinkage (Reduction)
Shrinkage (Reduction) refers to the decrease in size, volume, or quantity of a material or object. This phenomenon can occur in various contexts, such as textiles, where fabrics may shrink after washing, or in manufacturing, where products may lose weight during processing.
In economics, shrinkage can describe the reduction in inventory levels due to sales or loss. It is important for businesses to monitor shrinkage to maintain efficiency and profitability. Understanding the causes and effects of shrinkage helps in managing resources effectively and minimizing waste.