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First in, First out (FIFO)

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An inventory rotation technique where older items are shipped before the new ones.

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What is First In, First Out (FIFO)?

First in, first out (FIFO) is an inventory method in which the items that are entered into the inventory first are the ones that are sold or used first.  


This method is used to ensure that the oldest items are sold or used first, regardless of their current market value, so that items don’t become obsolete or expire. 

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