What inventory technique ensures that the oldest perishables are sold first?

The technique that ensures the oldest perishables are sold first is known as FIFO, which stands for "First in, first out." This inventory management method is particularly essential for businesses handling perishable goods, such as food items, where the risk of spoilage is high. By utilizing FIFO, retailers create a system where items that were added to the inventory first are the ones to be sold first. This strategy minimizes waste and helps maintain product freshness, ensuring that customers receive the highest quality items available.

In contrast, other techniques like LIFO (Last in, first out) can lead to older items remaining unsold, potentially resulting in spoilage. JIT (Just in time) focuses on reducing inventory levels and increasing efficiency rather than specifically prioritizing the sale of older items. ABC analysis categorizes inventory based on importance and value, but it does not inherently regulate the order in which perishables must be sold. Hence, FIFO stands out as the most effective inventory technique for managing perishables by promoting the sale of the oldest items first.