What does FIFO stand for?

FIFO stands for "First In First Out," which is a key inventory management principle used in various industries, including food service and retail. This method ensures that the oldest stock—those items that were received or produced first—is sold or used before newer inventory. This practice is particularly important in maintaining food safety and quality, as it minimizes the risk of spoilage or expiration of perishable items.

By using FIFO, businesses can efficiently manage their stock levels, reduce waste, and ensure that customers receive fresh products. This system also helps companies maintain accurate accounting of inventory, as it aligns with the flow of goods and costs over time, allowing for a clearer understanding of profit margins.

In contrast, the other choices do not accurately represent inventory management standards. Therefore, understanding FIFO is crucial for anyone working in environments like Publix Deli, where food freshness is paramount.