FIFO stands for First In, First Out. It is a method used to manage inventory or stock, where the first items received or produced are the first ones to be sold or used. FIFO ensures that older items are used or sold first, reducing the risk of spoilage or obsolescence. It is commonly used in industries like retail, manufacturing, and food service. For example, in a grocery store, perishable items like fruits and vegetables are typically managed using FIFO to prevent wastage. FIFO can also be applied to non-perishable goods, such as electronics, to ensure that older models are sold before newer ones. It helps in maintaining accurate inventory records and prevents inventory holding costs. FIFO can be implemented using various methods, such as physical placement, labeling, or using inventory management software.

Topline Industries Interview Questions: Tell me about FIFO?

Asked inTopline Industries,Store Incharge

Tell me about FIFO?

AnswerBot

FIFO stands for First In, First Out. It is a method used to manage inventory or stock, where the first items received or produced are the first ones to be sold or used.