What does FIFO stand for in the context of stock management?

In stock management, FIFO stands for "First in, first out." This method ensures that the oldest inventory items are used or sold first before newer stock. Implementing FIFO is essential in food service and hospitality, such as in a restaurant, where ingredients can have limited shelf lives. This approach helps minimize waste and ensures that customers receive the freshest food possible.

For instance, if a fresh batch of produce arrives, a restaurant using FIFO will make sure to use the older produce first. This not only helps in maintaining quality but also adheres to health regulations regarding food safety. Additionally, it simplifies inventory tracking as it encourages a systematic flow in stock rotation. Overall, adhering to FIFO practices is crucial for efficient inventory management and customer satisfaction.