In inventory control, first in, first out [FIFO] means that stock is issued and charged out on the basis of the age of the inventory; the oldest stock is issued first. From an inventory control point of view this reduces the likelihood of stock write-offs, of obsolete or age-expired stock. From a costing point of view it reflects the actual price paid for the inventory. If stock is replenished at a different price, there is then a dilemma about pricing stock that has been bought at different prices. See also Last in, First Out.
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Discover the world’s largest Glossary of Procurement terms
With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and procurement consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.
