What does the 'FIFO' method stand for in stock rotation?

The 'FIFO' method stands for "First In, First Out." This stock rotation system is crucial in food service and inventory management. The primary principle behind FIFO is that the oldest stock—items that were received or produced first—should be used or sold before the newer items. This approach helps mitigate the risk of spoilage and waste, especially in perishable goods.

Using FIFO ensures that products are rotated properly, which is important for maintaining food safety standards and ensuring quality. For example, if a restaurant receives a shipment of fresh produce, the items that were delivered first should be utilized before newer items to prevent any chance of spoilage.

This method is widely accepted in both the culinary industry and retail sectors because it promotes efficiency and supports better inventory management practices. Proper implementation of FIFO can lead to reduced food costs and better customer satisfaction, as patrons receive fresher products.