Definition, Meaning & Synonyms
fifo
abbreviation
ˈfɪfoʊ
Definition
FIFO stands for ‘First In, First Out’, a method used primarily in inventory management and data processing.
Examples
- In a bakery, they use the FIFO method to ensure that older bread is sold before fresher loaves.
- The company implemented a FIFO system for its warehouse to improve inventory turnover.
Meaning
A system where the first items added are the first ones to be removed or processed. It ensures that older inventory is used before newer items, helping to manage stock effectively and reduce waste.
Synonyms
- First In, First Out
- FIFO method
- Inventory management technique
