What Is FIFO in Inventory? Simple Explanation

FIFO means First In, First Out—you assume you sell the oldest stock first.

Why Use FIFO

• Perishables – Sell before expiry (food, FMCG, pharma)
• Price changes – Old stock usually costs less; FIFO matches reality
• Simple – Easy to understand and implement

For Indian Shops

Most kirana and retail shops use FIFO. Stockkeeper tracks stock in/out so you can sell oldest first.

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