In FEFO inventory management, which statement is true?

• A. It means using items with the oldest expiry date first
• B. It means using items with the newest expiry date first
• C. It means using items based on cost
• D. It means rotating stock by supplier

Answer: (B)

FEFO stands for First Expiry, First Out: you should use items that expire soonest before those with later dates. This approach minimizes waste and helps ensure products are used while they’re still within their shelf life. So the statement that aligns with FEFO is using items with the oldest expiry date first. Choosing the newest expiry date first would leave items with earlier dates in stock longer, increasing the risk of spoilage and waste. FEFO focuses on expiry dates, not cost or supplier rotation, so stock should be organized so the earliest-expiring items are the easiest to access and monitored regularly for approaching expiries.