The implementation of the First In, First Out (FIFO) principle is critical for managing perishable or time-sensitive goods. This ensures that the oldest stock is used or shipped first, minimizing the risk of product obsolescence or spoilage. Regular audits and advanced inventory tracking systems play a pivotal role in maintaining compliance with FIFO requirements, guaranteeing the quality and freshness of goods.

Effective inventory management relies on maintaining optimal stock levels. Utilizing a Min-Max inventory system helps prevent stockouts or excess inventory situations. By setting minimum and maximum thresholds, organizations can trigger automatic alerts when inventory levels fall below the minimum requirement. These red alerts serve as proactive indicators, prompting timely replenishment actions to prevent disruptions in supply chains and ensuring that customer demands are consistently met.