What is FIFO and why is it preferred for perishable items?

• A. Fast Inventory, Fast Output; speeds up orders.
• B. Final In, Final Out; places newest items at front.
• C. First-In, First-Out; used to maximize batch production.
• D. First-In, First-Out; uses older inventory first to minimize spoilage; rotate stock and label with dates.

Answer: (D)

First-In, First-Out means using the oldest inventory before the newer stock. For perishable items, this approach is essential because it directly targets shelf life: by handling items with the earliest expiration dates first, you dramatically reduce the chance that anything goes past its safe-use date and ends up wasted. Practically, you rotate stock so older items sit in front, and you label and date items so staff can quickly identify which ones to use next. This not only minimizes spoilage but also helps maintain consistent quality and proper inventory control. The other descriptions don’t fit perishable inventory practices: one describes an unrelated fast-output idea, another suggests using newer stock first (which would raise spoilage risk), and another confuses handling perishables with batch production planning.