1) The document outlines policies and procedures for processing unscheduled inventory shrink adjustments at warehouses, including defining roles and responsibilities in the process. 2) Originating managers complete shrink adjustment request forms and obtain approvals from distribution management and finance before adjustments are processed. 3) Adjustments over $500,000 require additional approval from the director level. Sign-offs can be provided via email with the form and approval statement attached.

1. Prepared by Finance xxxx Unscheduled Shrink Policy

2. Process flow and responsibilities Sign-Off Procedures and examples Definition and Goals Mailing Addresses and Accounting Contacts 19-21 3-4 5-11 12-18 Table of Contents Page

5. Process Flows and Responsibilities

12. Sign-off Procedures

14. The Electronic version of this form is in Excel and will be forwarded to you with the new policy example

15. CMB-02-001 Originators 3 Initials Calendar Year 3 digit numbering scheme E.g xxxx xxx xxxx A form number must be entered by the originator for every SAR submission. The form number will provide a reference number for the originator as well as distribution and Finance. SAR Form Please use the following format...

17. OPI Procedures for Taking Shrink Involves OPI Involves OPI Involves OPI Involves OPI Reference Appendix A for an example of an Inventory Activity Report