Which products do we apply the FIFO method to?

The FIFO method, or "First In, First Out," is particularly crucial for managing inventory of perishable products. This technique ensures that the oldest stock is used or sold first to minimize waste due to spoilage. In the context of a coffee shop like Biggby, perishable products include items such as milk, cream, and fresh ingredients that can degrade over time.

Applying FIFO to perishable goods helps maintain freshness and quality, which is vital in the food and beverage industry. Items that are not consumed in the order they were received may lead to financial losses and impact customer satisfaction due to inferior product quality.

While it could be argued that other types of products, such as canned or dairy items, may also benefit from FIFO, the primary focus in this context is on all perishable products, emphasizing the importance of freshness.