FIFO

Your oldest stock goes out first: when the same product is on the shelf from two deliveries, you send the one that arrived earlier before the one that arrived later. Nothing sits at the back for a year getting dusty or out of date, and the rule is easy to follow because everyone can see the order of arrival. That rule is called FIFO, short for first in, first out.

FIFO works when age is what matters. For goods that never expire, such as mugs, screws or T-shirts, it keeps stock moving and the books simple. Accountants also use the name for a way of valuing stock, which is a separate use of the same word; ask yours which applies to you.

If your products have expiry dates, the date of delivery is not enough. Use FEFO instead, which looks at the date on the box rather than the day it arrived.