How to Change From LIFO to FIFO
Change from LIFO to FIFO to ensure the sale of fresh goods. LIFO stands for last-in-first-out, meaning newly received stock is placed in front of existing stock on shelves and thus sold first. FIFO, or first-in-first-out, rotates stock so the inventory that has been on hand the longest is sold first. LIFO inventory must run out completely to keep stock from sitting on shelves for years. This is out of the question for perishable items, but it also marks the shelf time for merchandise that changes package design or adds new features. Though some retailers and suppliers don't consider dry goods and non-food items as needing FIFO rotation, keeping stock of any kind on a shelf for too long can result in a loss of salable merchandise.
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Instructions
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How to Change From LIFO to FIFO
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Clear the shelves when receiving a new shipment. Take the old stock off the shelves to make room for the new inventory.
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Put the newly received stock on the back of the shelves. This ensures the older merchandise will sell first.
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Put the old stock back on the shelves in front of the new items. Inspect the old stock for expiration dates and unsightly package wear, especially former LIFO inventory. Remove any unsalable items to prevent customers from getting a bad impression of your inventory.
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Tips & Warnings
Hold a meeting with all employees who handle stock. Outline your procedures for putting new stock behind the older merchandise to encourage the sale of older inventory first. Make FIFO stock rotation a team effort to ensure its success.
