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The first step in implementing the FIFO (First In, First Out) rule in the food industry is to organize inventory by clearly labeling and arranging products based on their expiration dates. This involves placing older stock at the front and newer stock at the back to ensure that items are used in the order they were received. Proper training of staff on FIFO practices is also essential to maintain this system consistently. Regular audits of inventory can help ensure compliance and minimize waste.

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The FIFO rule, or "First In, First Out," is an inventory management and accounting method where the oldest inventory items are sold or used first. This approach helps businesses manage stock efficiently, reduce waste, and maintain accurate financial reporting by ensuring that the costs associated with older inventory are recognized first. FIFO is commonly used in industries where products have a limited shelf life, such as food and pharmaceuticals. It contrasts with the LIFO (Last In, First Out) method, where the most recently acquired items are sold first.


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