Which inventory system issues the oldest stock first, ensuring goods don't expire in storage?

Which inventory system issues the oldest stock first, ensuring goods don't expire in storage?

• A. LIFO
• B. FIFO
• C. EOQ
• D. Just-In-Time

Answer: (B)

Rotating inventory so the oldest items are used first prevents products from sitting in storage and expiring. This approach, FIFO (First-In, First-Out), means items that arrived first are issued or sold before newer stock. It’s especially important for perishable or shelf-life‑sensitive goods, helping minimize waste and spoilage. The other methods don’t guarantee this: using newer stock first doesn’t protect older stock from expiring; EOQ is about how much to order rather than which stock to use first; Just-In-Time aims to minimize on-hand inventory and doesn’t inherently specify rotation, though it can be paired with good rotation practices.

Rotating inventory so the oldest items are used first prevents products from sitting in storage and expiring. This approach, FIFO (First-In, First-Out), means items that arrived first are issued or sold before newer stock. It’s especially important for perishable or shelf-life‑sensitive goods, helping minimize waste and spoilage. The other methods don’t guarantee this: using newer stock first doesn’t protect older stock from expiring; EOQ is about how much to order rather than which stock to use first; Just-In-Time aims to minimize on-hand inventory and doesn’t inherently specify rotation, though it can be paired with good rotation practices.