Short Answer 
Two effective tools for reducing inventory shrinkage are the Transaction Analysis Log (TAL), which helps identify theft patterns through transaction data, and structured policies for Refunds and Exchanges that prevent fraud. Ineffective options include Transaction Cancel, Daily Planner, and Daily Message Board, as they do not contribute to loss prevention.
Step 1: Identify Effective Shrink Reduction Tools
From the provided options, it is essential to identify the tools that directly contribute to reducing shrinkage in inventory. The two options that effectively aid in this process are:
- C. Transaction Analysis Log (TAL): This log is crucial for analyzing transaction data to spot patterns or abnormal activities that may indicate theft or fraud.
- E. Refunds and Exchanges: Properly structured policies for refunds and exchanges are vital as they help ensure that all return transactions are legitimate, thus reducing the potential for losses.
Step 2: Understand the Purpose of Each Tool
Each selected tool serves a specific purpose in shrink reduction strategies. Understanding their functions can help effectively implement them in inventory management:
- Transaction Analysis Log (TAL): By using this log, businesses can track and analyze past transactions to detect any inconsistencies or unusual patterns that may signal theft.
- Refunds and Exchanges: By ensuring that refund and exchange transactions are managed carefully, businesses can cut down losses from fraudulent returns and enhance overall operational integrity.
Step 3: Recognize Ineffective Options
While analyzing the options, it’s important to recognize that not all tools contribute to shrink reduction. The remaining options do not effectively aid in minimizing inventory loss. These include:
- A. Transaction Cancel: Does not provide insight into loss prevention.
- B. Daily Planner: More focused on scheduling than inventory management.
- D. Daily Message Board: Primarily a communication tool with no direct impact on shrink reduction.