You have been roasting coffee for the past year and decided to check the shrinkage rate....
- You have been roasting coffee for the past year and decided to check the shrinkage rate. You are astounded that the shrinkage rate is at about 25%. What can you do about this? Be thorough in your explanation.
Homework Answers
During the actual roasting process, the loss or shrinkage of coffee is about 18% so that the pound of coffee ends up as 82lbs of roasted coffee.
When the shrinkage rate is 25% it means it is higher than normal and ends up with 75lbs of coffee. The main reasons for shrinkage are ordering mistakes, theft and spoilage. Customer theft is deterred by training employees how to watch for it, installing surveillance and security in stores. Small efforts add up to real success when coming to reducing shrinkage.
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