FIFO stands for what and why is it used?

• A. First In First Out; to speed up checkout
• B. First-In, First-Out; to ensure freshness and reduce waste by using oldest stock first
• C. Fast Inventory, Fast Output; to maximize speed
• D. Final In, Final Out; to enforce limits

Answer: (B)

First-In, First-Out means using the oldest stock first. This approach keeps perishable items, like food ingredients, from sitting too long and spoiling, which helps maintain freshness and reduce waste. In practice, staff rotate stock so items received earlier are used before newer ones, ensuring safety and quality and keeping inventory costs more accurate. It isn’t about speeding up checkout or any other non-inventory purpose, and the other descriptions don’t match how FIFO actually works.