Inventory management is a critical component of any business. It is responsible for ensuring that the right products are in stock and available to customers when they need them.
Businesses can manage their inventory in a variety of ways, and the ideal method for a given organization will rely on its unique requirements and objectives.
Here are 7 of the most common approaches to inventory management:
First in, first out (FIFO)
The first in, first out approach to inventory management is one of the most commonly used methods. This method works on the basis that the items which are stocked first are also the ones that should be sold first. The main advantage of this approach is that it helps to avoid stock-outs of popular items, as older stock is sold before newer stock.
Last in, first out (LIFO)
The last in, first out approach is the opposite of the …