Which of the following factors can lead to inventory shrinkage in a warehouse?

Get more with Examzify Plus

Remove ads, unlock favorites, save progress, and access premium tools across devices.

FavoritesSave progressAd-free
From $9.99Learn more

Prepare for the CDC 2S051 Volume 4 – Warehouse Operations and Systems Test. Study using flashcards and dynamic multiple choice questions offering detailed explanations. Excel in your exam!

Inventory shrinkage in a warehouse can occur due to various factors, but the most comprehensive answer encompasses theft, damage, miscounting, and mismanagement. These elements directly impact the physical quantity and quality of inventory.

Theft can result from both internal and external sources, leading to a direct loss of goods. Damage refers to the degradation of inventory due to mishandling, environmental factors, or lack of proper storage conditions, thereby reducing its usable quantity. Miscounting happens when there is an error during stock takes or when receiving shipments, causing discrepancies between actual and recorded inventory levels. Mismanagement involves poor inventory control practices that can lead to either overstocking or stockouts, ultimately affecting overall inventory integrity.

In contrast, while inadequate training of employees, high employee turnover, and inaccurate supplier deliveries may contribute to operational inefficiencies, they do not, on their own, typically cause inventory shrinkage as directly and severely as the factors mentioned. Thus, the correct answer reflects those causes that have a direct and significant impact on the actual loss or decrease of inventory within a warehouse setting.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy