The inventory stock within the food industry is usually perishable. Thus,the manner in which a company handles and manages their food inventory is critical to the safety of the products. A successful organization will have a good inventory techniques to handle the availability chain, distribution of the goods to ensure safety of the products for consumers.
First-In-First-Out (FIFO) Technique
First-in-first-out also known as FIFO method is an asset-management and inventory valuation method in the first goods purchased and first goods sold, used, or disposed off. FIFO is a useful technique, especially in the food industry for perishable food and those that have a shorter shelf life. Most retailers will be using the newest stock to fulfill orders, that leaves the older inventory sitting in the warehouse going pass their sell by date. By displaying the newer goods at the back of the shelves, this can help to clear the older goods, and thus reduce cost and prevent wastage.