What is the significance of employing a "First Expired, First Out" (FEFO) approach?

Utilizing a "First Expired, First Out" (FEFO) approach is crucial in managing inventory effectively, particularly for perishable or time-sensitive items. This method emphasizes the importance of using items that are closest to their expiration dates before utilizing those with longer shelf lives. By prioritizing items that are nearing expiration, organizations can significantly reduce waste and ensure they are using products while they are still viable. This is especially important in contexts like food supplies, pharmaceuticals, and other materials where safety and efficacy are tied to shelf life. Therefore, the FEFO approach helps to maintain the quality of inventory and ensures compliance with safety standards.