I can see the following reason of the inventory shrinkage -
1. You are selling more then procurement is the prime reason of the inventory shrinkage.
2. Damage in the supply chain (Inventory may get crushed or dropped in the shipping or receiving process)
3. Theft in the store by customers or staff.
4. Inaccurate Records And Errors (one should always confirm that the quantity received agrees with the quantity ordered)
