Question

What does FIFO stand for and what products do we use FIFO to rotate?

Answer 1

FIFO stands for First-In, First-Out, a method of inventory management ensuring older stock is used before newer stock, typically applied to perishables like produce and pharmaceuticals.

Step-by-step explanation:

FIFO stands for First-In, First-Out, which is a method used to manage and value inventory. It assumes that the first items placed in inventory are the first ones to be sold or used. FIFO is often used to rotate perishable goods, such as produce, dairy products, and pharmaceuticals. By applying this method, companies ensure that older stock is used before newer stock, thereby reducing the risk of inventory getting spoiled or obsolete.