First In / First Out (FIFO) is an inventory management method in which the oldest stock received (first in) is issued or shipped first (first out). FIFO is widely applied in industries handling perishable goods, fast-moving products, or items with expiry dates to reduce waste and ensure consistent quality. By prioritizing older inventory, this method minimizes spoilage, prevents stock obsolescence, and supports accurate accounting of stock costs. Implementing FIFO requires proper warehouse layout, labeling, and monitoring to ensure that goods are rotated effectively. It is a foundational principle in warehouse and supply chain operations, directly influencing efficiency, cost control, and customer satisfaction.
Key Characteristics:
- Inventory Rotation
- Stock Prioritized
- Perishable Goods
- Quality Maintained
- Waste Reduced
- Cost Controlled
- Timely Dispatch
- Operational Efficiency
