What does the FIFO method stand for?

The FIFO method stands for "First in/first out." This inventory management strategy ensures that the items that are received or produced first are the ones that are used or sold first. It is particularly important in food service and nutrition contexts, as it helps to maintain the freshness of perishable items. By rotating stock in this manner, organizations can reduce waste and minimize the chances of using expired or spoiled products.

This method is crucial in environments where food safety is a priority, as it ensures that the oldest stock is utilized before newer stock, thereby minimizing the risk of spoilage and foodborne illness. It's a fundamental principle in inventory control that enhances efficiency and promotes responsible resource management.