LIFO, which stands for Last In, First Out, is a common inventory management method used in the retail industry. This method assumes that the last items added to inventory will be the first items sold. In other words, the most recently purchased products are the ones that are sold first.
The use of LIFO in retail can have a few advantages. Firstly, it can help retailers manage their inventory more efficiently. By selling the most recently purchased items first, retailers can ensure that their stock remains fresh and in demand. This can help prevent product obsolescence and reduce the amount of waste.