What does FIFO stand for in inventory management?

FIFO stands for "First In, First Out." This inventory management principle means that the oldest stock or inventory items are sold or used first before newer items. This method is particularly important in industries where products have a limited shelf life, such as food service. By following FIFO, businesses can minimize spoilage and ensure that customers receive fresh items.

In the context of Zaxby's and similar food service operations, using FIFO helps maintain quality and can enhance customer satisfaction by ensuring that the food served is fresh. Additionally, adhering to this method can assist in accurate inventory accounting, as it better reflects the actual cost of goods sold based on the order in which inventory is acquired and used.