What is FIFO?

What is FIFO?

• A. A pricing method
• B. A packing method
• C. A supplier evaluation technique
• D. A method of stock rotation

Answer: (D)

First In, First Out is a stock rotation method used in inventory management. It means the oldest inventory is used first, so products with earlier expiration dates are used before newer stock. This helps prevent spoilage and waste and keeps food quality high in a foodservice operation. In practice, staff rotate stock, keep older items at the front, and date items so the oldest stock is used first during prep and service. FIFO also supports accurate inventory costing by aligning the use of goods with their earliest purchase costs. This concept is specifically about how you manage stock, not about pricing, packing, or evaluating suppliers.

First In, First Out is a stock rotation method used in inventory management. It means the oldest inventory is used first, so products with earlier expiration dates are used before newer stock. This helps prevent spoilage and waste and keeps food quality high in a foodservice operation. In practice, staff rotate stock, keep older items at the front, and date items so the oldest stock is used first during prep and service. FIFO also supports accurate inventory costing by aligning the use of goods with their earliest purchase costs. This concept is specifically about how you manage stock, not about pricing, packing, or evaluating suppliers.