relevant costing

Appler is considering the relevant cash flows involved in a short?term decision. An important client has asked for the minimum price for the processing of a compound. The compound involves the following:

Material A: Appler needs 500 kg of material for the compound but has 200 kg in stock present. The stock items were bought 3 months ago for $5/kg but have suffered 10% shrinkage since that date. Material A is not regularly used in the business and would have to be disposed of at a cost to Appler of $400 in total. The current purchase price of material A is $6.25/kg.

sir i wanted to know that what exactly does the word “shrinkage” means in this context and how come it has not affected our calculations? My understanding was that perhaps, due to shrinkage we would just have 180kg in inventory and hence 320kg needs to be bought. But apparently kaplan completely ignores that shrinkage!