What does FIFO stand for in inventory management?

FIFO stands for "First In, First Out," which is a method used in inventory management that ensures the oldest stock (the first items that were added to the inventory) is sold or used first. This approach is particularly important in industries that deal with perishable goods, such as pharmaceuticals and food products, where items can expire or degrade over time.

By using FIFO, a business can minimize losses due to expired or outdated products and ensure that customers receive the freshest items available. While other methods like Last In, First Out (LIFO) exist, FIFO is more commonly used for managing inventory that has a shelf life.

Understanding this concept is crucial for those in veterinary pharmacology since it helps ensure that medications and supplies are used efficiently and that expiration dates are respected, thereby promoting safety and effectiveness in treatment.