Which of the following is a waste-related cause of shrinkage?

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Waste-related causes of shrinkage typically refer to losses that occur within a retail environment due to poor management or handling rather than intentional acts of theft or fraud. The choice indicating that products are not being stored properly directly aligns with this concept, as improper storage can lead to items being damaged, spoiled, or becoming unsellable, thus contributing to shrinkage.

When products are not stored in optimal conditions, it can result in a range of issues, such as damage caused by temperature fluctuations, contamination, or mishandling. This type of shrinkage is often avoidable through proper inventory management and storage practices, making it a waste-related issue tied to operational inefficiencies.

In contrast, other choices refer to deliberate actions or strategies that do not fall under waste-related causes. Internal theft and professional shoplifting involve criminal behavior, while overstocking can relate to financial inefficiencies or forecasting errors rather than waste. Understanding the specific causes of shrinkage helps businesses implement targeted strategies for reducing losses, so recognizing how poor product storage leads to shrinkage is a critical aspect of retail management.

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