Which inventory method is best for perishable goods management?

The First-In, First-Out (FIFO) inventory method is particularly well-suited for managing perishable goods because it ensures that the oldest stock is sold or used first. This approach helps minimize waste and spoilage, which is critical when dealing with items that have a limited shelf life. When perishable items are stored, they must be rotated to ensure that those with the earliest expiration dates are prioritized for consumption or sale.

By employing FIFO, businesses can maintain a fresher inventory, as newer products are placed behind older ones, preventing the loss of products due to expiration. This method ultimately enhances customer satisfaction by providing fresher goods and supports overall operational efficiency by reducing waste management costs associated with expired inventory. Additionally, FIFO is easily implemented in many warehouse systems, adding to its effectiveness in perishable goods management.