what is f i f o

what is f i f o? FIFO stands for “First In, First Out” and is an inventory management method commonly used in businesses. It means that the first products or materials received into inventory are the first to be sold or used. This method is particularly important for businesses dealing with perishable goods, as it helps ensure that older stock is sold before newer stock. FIFO is widely used in industries like food, pharmaceuticals, and retail to maintain product quality and minimize waste.