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Breakage
Definition
Units or inventory rendered unsellable due to damage during manufacturing, handling, transport, or in-store
How It's Calculated
Damaged units ÷ Total units handled × 100 (or value written off due to damage ÷ total shipped value × 100)
Example
During unloading at Costco’s Dallas distribution center, 12 cases of glass sauce jars are crushed and written off as breakage.
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