What does FIFO stand for in inventory management?

FIFO stands for "First In, First Out," a crucial inventory management method. This approach operates on the principle that the oldest inventory items (the first ones entered into the stock) should be the first to be sold or utilized. This is particularly important in the food and beverage industry, where products can have limited shelf life and may spoil over time. By using FIFO, businesses help minimize waste and ensure that customers receive fresher products.

This inventory method also aids in accurate stock control and financial reporting because it aligns with the actual flow of goods in a dynamic concession environment. It’s essential for adhering to health regulations and maintaining product quality, which can directly influence customer satisfaction. This makes FIFO a foundational practice in effective inventory management.