First-In, First-Out (FIFO) is a stock rotation technique where older inventory is used before newer inventory. In the context of food restocking, this means placing newly delivered items behind existing stock. For example, when restocking a shelf of canned goods, the cans with the closest expiration dates are brought to the front, ensuring they are sold or used first, while the newer cans are placed in the back.
This inventory management system is crucial in the food industry to minimize spoilage, reduce waste, and maintain product freshness. By prioritizing older items, businesses can significantly decrease the likelihood of products expiring on the shelf, which can lead to financial losses and potential health risks for consumers. Historically, FIFO principles have been adopted to comply with safety regulations and quality control standards.
