Grain Milling, Dry Bulk Food & Feed Handling worked example

Inventory Shrink at 58% reconciliation efficiency: a worked example

Here is what the math looks like when conditions slip. We hold every other input steady and drop reconciliation efficiency to 58%, then walk the calculation through step by step. Estimate the practical rate for reviewing or processing inventory shrink by comparing shrink weight investigated with review runtime and reconciliation efficiency.

The inputs for this scenario

  • Shrink weight under reconciliation: 8,500 lb (held at the documented default)
  • Shrink review runtime: 5 hr (held at the documented default)
  • Reconciliation efficiency: 58 % (the input this scenario stresses; the baseline uses 80)

Working through the calculation

  • The calculation starts from the formula this tool documents: Raw inventory shrink review throughput = shrink weight reviewed รท shrink review runtime.
  • Effective throughput works out to 986 lb / hr at these inputs, and this is the headline figure for the scenario.
  • Raw inventory shrink review throughput works out to 1,700 lb / hr at these inputs.
  • Efficiency works out to 58 % at these inputs.
  • Runtime works out to 5 hr at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where reconciliation efficiency sits at 80% and the headline result is 1,360 lb / hr, this scenario comes in 27.5% below the baseline at 986 lb / hr.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to reconciliation efficiency, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. It assumes review pace is uniform; complex multi-transfer lots, scale-calibration disputes, and missing tickets can stall reconciliation well below the modeled rate.

Results at a glance

  • Effective throughput: 986 lb / hr (headline result)
  • Raw inventory shrink review throughput: 1,700 lb / hr
  • Efficiency: 58 %
  • Runtime: 5 hr

Run it with your numbers

  • To rerun this with your own numbers, open the live Inventory Shrink calculator, set reconciliation efficiency to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.