Which inventory method is used to minimize waste due to shelf life?

• A. Just-in-time with no labeling
• B. LIFO method
• C. FIFO method
• D. Last in, last out

Answer: (C)

Using oldest stock first minimizes waste from items that expire. This is the FIFO method, which stands for First-In, First-Out. By using the oldest inventory before newer stock, products are less likely to sit past their shelf life, reducing spoilage and waste. For example, dairy or produce bought earlier is used before newer shipments. In contrast, LIFO (Last-In, First-Out) would push newer stock out first, leaving older stock to potentially expire. Last in, last out is another way of saying LIFO, with the same issue for perishables. Just-in-time with no labeling focuses on reducing inventory levels, but without proper rotation and age labeling, shelf-life waste can still occur. So FIFO best minimizes shelf-life waste.