What does the first-in, first-out (FIFO) approach refer to in inventory management?

• A. A stock rotation method to ensure older products are used first.
• B. To prevent cross-contamination between products.
• C. A method for batch production scheduling.
• D. A system for labeling new stock.

Answer: (A)

FIFO is a stock rotation method that ensures older products are used first. In food safety, items have shelf lives and can degrade or become unsafe over time, so using the oldest stock first helps prevent waste and reduces the risk of selling or using expired ingredients. Implementing FIFO means organizing storage so the oldest received or earliest-expiring items are used before newer ones, often by labeling with received and expiry dates and placing older stock in front. This approach also improves traceability and makes recalls easier, since you can identify which lots were used first. Other options describe different practices—preventing cross-contamination, scheduling production, or labeling new stock—that are important in their own right but do not define the FIFO method.