Inventory loss is a condition that occurs when there are fewer products on hand than should be, resulting in lower sales and shrink or a record of the amount and type of items missing from stock. Loss of inventory is a condition in which there is less of an item in stock than database or paper records indicate there should be. These occurrences must be tracked to identify patterns of loss that are linked to misplacement or theft of inventory items so that corrective action can be taken.