LIFO stands for “Last In, First Out,” an inventory management system where the newest stock is sold or shipped first. This approach is commonly used for non-perishable goods or products where stock rotation isn’t critical.
In logistics and inventory management, the LIFO method enables businesses to track and manage inventory efficiently, particularly when older stock can remain in storage without the risk of spoilage. LIFO logistics is often applied to products where freshness isn’t the primary concern, like bulk commodities, packaged goods, or shelf-stable beverages like soda.
While practical for non-perishables, the LIFO inventory method is rarely used for beverages that are rotated for freshness and have limited shelf life, such as milk and fruit juices.