Final answer:
Storing food that will expire sooner in front is an example of FIFO (First In, First Out), a method where older stock is used or sold before newer stock to minimize waste and ensure products are sold within their shelf life.
Step-by-step explanation:
Storing food that will expire sooner in front is an example of FIFO (First In, First Out). The FIFO method means that goods that are acquired first are sold or used first. This is a common practice in inventory management where older stock (in this case, food with an earlier expiration date) is used or sold before the newer stock. This minimizes waste and ensures that products are sold while they are still within their shelf life. It’s the opposite of LIFO (Last In, First Out), where the latest goods acquired are the first to be sold or used.
On the other hand, JIT (Just In Time) is an inventory management strategy where materials and goods are only ordered and received as they are needed in the production process, minimizing inventory costs. EOQ (Economic Order Quantity) is a formula used to determine the optimal order quantity that minimizes the total costs of inventory, including holding and ordering costs.