What rule does stock rotation follow?

What rule does stock rotation follow?

• A. Last In First Out (LIFO)
• B. First In First Out (FIFO) - a new delivery of product is placed at the back of the display to enable existing stock to be purchased first
• C. First Out Last In
• D. Random rotation

Answer: (B)

Stock rotation is about selling items in the order they were received to minimize spoilage and maintain quality. The rule that supports this is First In First Out: the oldest stock is sold first, so when a new delivery arrives it goes to the back of the display and customers buy from the front, ensuring older stock is used up before newer stock. This approach keeps products fresher, reduces waste, and helps with shelf-life management in retail or storage environments. Other methods don’t fit because Last In First Out would sell the newest items first, which can lead to expired or obsolete stock; First Out Last In isn’t a standard rotation method; and Random rotation lacks a disciplined system, increasing the risk of waste and inconsistent stock.

Stock rotation is about selling items in the order they were received to minimize spoilage and maintain quality. The rule that supports this is First In First Out: the oldest stock is sold first, so when a new delivery arrives it goes to the back of the display and customers buy from the front, ensuring older stock is used up before newer stock. This approach keeps products fresher, reduces waste, and helps with shelf-life management in retail or storage environments. Other methods don’t fit because Last In First Out would sell the newest items first, which can lead to expired or obsolete stock; First Out Last In isn’t a standard rotation method; and Random rotation lacks a disciplined system, increasing the risk of waste and inconsistent stock.