Stock rotation is the practice of managing inventory by periodically moving older or existing stock to the front of the storage area while placing newer stock at the back. The goal is to ensure that products are sold or used in the order they are received, minimizing the chances of goods becoming obsolete or spoiling.
This practice is commonly employed in industries with perishable goods or products with expiration dates, such as food, pharmaceuticals, and cosmetics.
By rotating stock, businesses can prevent wastage, maintain product quality, and optimize space utilization. It helps to avoid stockouts, reduces carrying costs, and enhances customer satisfaction.
Effective stock rotation requires proper inventory tracking, clear labeling, and adherence to first-in, first-out (FIFO) or first-expired, first-out (FEFO) principles.