ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Just In Case (JIC)
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LIFO Method
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FIFO Method
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Periodic inventory
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Detailed explanation-1: -FIFO stands for “first in, first out” and is one of the most common types of inventory management techniques. Grocery stores are a great example of an industry in which FIFO is popular. It basically means that when they buy milk from a farmer, the oldest milk purchased is the first milk that is sold to the customer.
Detailed explanation-2: -First in first out (FIFO) warehousing means exactly what it sounds like. It’s an inventory control method in which the first items to come into the warehouse are the first items to leave. Similar to the service industry concept of “first come, first served”, the FIFO method focuses on products, not people.
Detailed explanation-3: -The FIFO method is typically used to manage perishable product stock, with an expiry date, with the most common being food, medicine and cosmetic products.