Which inventory practice specifically helps prevent product expiration or obsolescence?

Which inventory practice specifically helps prevent product expiration or obsolescence?

• A. LIFO
• B. FEFO
• C. FIFO
• D. JIT

Answer: (C)

Prioritizing stock by expiration date prevents waste by ensuring items with the earliest expiration are used first. This approach, First Expired, First Out, directly reduces the risk that perishable or time‑sensitive products sit on the shelf until they become unsellable or obsolete. It keeps the active inventory fresh and aligns with the goal of minimizing expired or outdated stock. While First In, First Out aims to use items in the order they were received, it doesn’t specifically account for how long those items remain usable. Last In, First Out can leave older stock to linger and potentially expire. Just-In-Time focuses on minimizing on-hand inventory and timing of replenishment rather than rotation by expiration dates. Therefore, FEFO best targets preventing expiration and obsolescence.

Prioritizing stock by expiration date prevents waste by ensuring items with the earliest expiration are used first. This approach, First Expired, First Out, directly reduces the risk that perishable or time‑sensitive products sit on the shelf until they become unsellable or obsolete. It keeps the active inventory fresh and aligns with the goal of minimizing expired or outdated stock.

While First In, First Out aims to use items in the order they were received, it doesn’t specifically account for how long those items remain usable. Last In, First Out can leave older stock to linger and potentially expire. Just-In-Time focuses on minimizing on-hand inventory and timing of replenishment rather than rotation by expiration dates. Therefore, FEFO best targets preventing expiration and obsolescence.